GDEX 1Q net profits up by 35%, proposes bonus issue of shares

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KUALA LUMPUR: Stronger sales growth and improved operation efficiency has boosted GD Express Carrier Bhd’s (GDEX) earnings performance for the first quarter of financial year ended Sept 30 (1QFY15).

GDEX saw its net profits expanding by 35% to RM4.98 million against RM3.68 million in the previous corresponding quarter.

In a filing with Bursa Malaysia yesterday, the carrier service provider said that its revenue for 1QFY15 had also improved by 18% to RM43.74 million from RM37.1 million the year before as a result of positive sales growth contribution from both the courier and logistics services, which reflects a continuance of strong support from new and existing customers.

The group also achieved an improvement in earnings per share of 0.59 sen in 1QFY15 compared with 0.47 sen in the same period a year ago.

Meanwhile, GDEX has proposed to issue up to 310.85 million bonus shares, on the basis of one bonus share for every three existing shares held and will also issue up to 186.51 million warrants on the basis of one warrant for every five shares (not including bonus shares) held, in a move to reward its shareholders.

To accommodate the bonus issue, GDEX has also proposed to increase its authorised share capital to RM500 million comprising 10 billion shares, from RM50 million comprising 1 billion shares.

GDEX share price has staged a strong rebound after the heavy selldown across the global stock markets last month. The stock bounced back from a recent low of RM1.70 to RM2.12 yesterday, with a market capitalisation of RM1.78 billion.

 

This article first appeared in The Edge Financial Daily, on November 14, 2014.