KUALA LUMPUR (Feb 25): GD Express Carrier Bhd's (GDex) net profit surged 62.2% to RM10.69 million in its second financial quarter ended Dec 31, 2018 (2QFY19) from RM6.59 million a year ago, on higher demand for its courier services from its e-commerce business.

This resulted in a higher earnings per share of 0.19 sen in the current quarter, compared with 0.12 sen a year ago (2QFY18).

Quarterly revenue also rose 8.3% to RM82.81 million, from RM76.46 million.

The improved quarterly performance lifted the group's net profit for the cumulative six months ended Dec 31, 2018 (1HFY19) to RM17.16 million, up 18.5% from RM14.48 million year ago, while revenue grew 8.3% to RM157.32 million from RM145.23 million in 1HFY18.

GDex said in its exchange filing today that it recorded a 24% jump in logistics revenue in 1HFY19, but segmental profit fell due mainly to expenses incurred for its warehouse expansion.

Its courier services segment, meanwhile, saw an improvement during the period, due mainly to a gain from redemption of its convertible bonds in Indonesia’s PT Satria Antaran Prima Tbk (SAP Express).

On prospects, GDex views the current market environment as challenging and said it will work on cost rationalisation, operational efficiency and innovation to overcome industry competition.

“The group will cautiously invest in resources and infrastructure to expand its domestic and regional network, as well as pro-actively seek further strategic investment opportunities to enhance its business sustainability,” it added.

Shares of GDex finished unchanged today at 30.5 sen, giving it a market capitalisation of RM1.72 billion.