KUALA LUMPUR (Nov 12): RHB Research has initiated coverage on GD Express Carrier Bhd (GDEX) at RM2.01 with a Buy rating and target price RM2.42, valuing the stock at an implied 81x FY15F P/E.

In a note Wednesday, the research house said GDEX had seen 10 years of strong earnings growth, which was expected to remain resilient in the coming years on the capacity expansion of its express delivery service and logistics arm as the drivers.

RHB Research said that GDEX had more room to grow, as the company believes that e- commerce has changed the way business was done and that it was in the sweet spot to ride on this bandwagon.

“Street thinks improvements in regional internet infrastructure will facilitate transaction volumes and allow the company to grow its business.

“Note that GDEX not only focuses on Malaysia’s 30 million population, but the ASEAN region’s 600 million inhabitants as well. We believe this gives it huge growth potential,” it said.  

At 10.17am, GDEX rose 4.48% or 9 sen to RM2.10 with 538,600 shares traded.