KUALA LUMPUR (Nov 20): GD Express Carrier Bhd’s (GDex) net profit slipped 2.6% in the first financial quarter ended Sept 30, 2017 (1QFY18) due to higher operating expenses incurred for the expansion of network and infrastructure, to cater to higher demand of express delivery by its e-commerce business.

Net profit for 1QFY18 fell to RM7.89 million from RM8.11 million a year ago, while earnings per share dropped to 0.14 sen from 0.15 sen.

Quarterly revenue, however, rose 18.5% to RM68.77 million 1QFY18 from RM58.02 million in 1QFY17.

For its courier services division, GDex said pre-tax profit dropped 9.1% to RM9.02 million from a year earlier, while revenue grew 17.3% to RM67.08 million.

As for its logistics services division, pre-tax profit surged 202.7% year-on-year (y-o-y) to RM306,000 as revenue climbed 105.2% y-o-y to RM1.69 million. GDex attributed the segment’s improved performance to increased demand in warehousing services for the e-commerce business.

On outlook, the group said with the growth of the e-commerce market, which continue to attract the entrance of new players, it expects more intense competition in the express delivery industry, with some impact on its business margin.  

However, it will continue to leverage on its strong position in the industry and continue to invest in resources and infrastructure to expand its domestic and regional network.

“In addition, the group is proactively seeking further strategic investment opportunities to enhance its long-term competitiveness,” GDex said.

GDex shares closed 0.5 sen or 0.79% lower at 63 sen today, with 734,300 shares done, valuing it at RM3.54 billion.