Kuala Lumpur, Malaysia – Teleport, the logistics arm of Capital A Bhd, is aiming for sustained double-digit growth next year, which could pave the way for a potential public listing.
The regional logistics firm is on track to achieve RM1 billion (US$225 million) in annual revenue for the first time this year and is projected to maintain similar growth momentum in the coming year.
“After that, we can decide if we are ready,” said CEO Pete Chareonwongsak at a briefing in Kuala Lumpur.
Teleport has consistently delivered impressive year-over-year growth of at least 50% since 2022 and is poised to become a significant revenue driver for Capital A, especially after the planned disposal of its aviation business to AirAsia X Bhd.
“The pressure is on us and ADE to demonstrate our earnings,” Chareonwongsak added, referring to Capital A’s aircraft maintenance arm, Asia Digital Engineering.
Teleport contributed 35% of Capital A’s non-aviation revenue in the third quarter.
“We believe we are a billion-dollar business, and we need to have the earnings to justify that valuation,” Chareonwongsak said.
The company is also planning another round of equity fundraising next year and will restructure US$35 million of debt raised in 2023 to support a potential IPO.
In the third quarter, Teleport generated revenue of 287 million ringgit, a 51% increase year-over-year. Its earnings before interest, taxes, depreciation, and amortization (EBITDA) surged by 1,700% to 21.9 million ringgit during the same period.
Teleport operates an asset-light model, leveraging the belly space of AirAsia’s 200+ planes and partnerships with 40 airlines, along with its own fleet of three freighters. The company aims to add 10 more airline partners to further scale its operations.
Currently, Teleport delivers 207,000 parcels daily and targets to reach 350,000 parcels per day by the end of the year. The long-term goal is to scale up to 2 million parcels per day by 2025 through its third-party partner network.
A key growth driver for Teleport is the burgeoning e-commerce export market from China. Chareonwongsak expressed confidence in the company’s ability to maintain momentum, even in the face of potential US tariffs on Chinese imports.
“E-commerce is pretty robust,” he said, emphasizing that Teleport’s focus on markets like the US, Europe, and Australia, which are more likely to be impacted by tariffs, is limited.
“Our diversified network of 40 airlines provides multiple avenues to deliver the necessary capacity,” he added.
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