SHAH ALAM (Dec 6): GD Express (GDex) Carrier Bhd is allocating higher capital expenditure (capex) of RM50 million for the financial year ending June 30,2019 (FY19), some 66.67% higher than it spent for FY18 (approximately of RM30 million).
"We have much bigger allocation for the capex in FY19, which is close to RM50 million, its the biggest (spending) so far," Teong Teck Lean, GDex's managing director cum chief executive officer, told the press after the annual general meeting (AGM) here.
Of the total capex for FY19, the investment includes modernising its shipping hub, expanding vehicle fleets, opening new distribution networks, as well as technological advancement.
On its prospects for FY19, Teong sees a challenging year ahead for the company, mainly due to intense competition and rising pressure from operating costs.
In its 1QFY19, the group reported a 18% year-on-year decline in net profit to RM6.47 from RM7.89 million — though revenue grew 8.35% to RM74.51 million from RM68.77 million.
Shares of GDex closed down one sen or 1.67% yesterday at 30 sen, giving the company a market capitalisation of RM1.58 billion.