Stock With Momentum: GD Express Carrier

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This article first appeared in The Edge Financial Daily, on December 23, 2015.

 

GD Express Carrier Bhd (-ve)

EXPRESS delivery service provider GDEX (Fundamental: 2.55/3, Valuation: 0.7/3) closed 1.2% higher to RM1.71 yesterday on heavy volume.

Notably, on the same day, RHB Research issued a “neutral” call on the logistics sector, citing rising operational costs and unfavourable customer mix. However, GDEX was selected as its Top Pick due to its fast-growing e-commerce business.

On Monday, the company proposed a first and final dividend of 1 sen per share for FYJun2015, giving a yield of 0.6%. Under a dividend reinvestment plan, shareholders have an option to reinvest the dividend into new GDEX shares at RM1.4181 per share. 

GDEX is primarily involved in express delivery and logistics, which accounted for 95.8% and 4.2% of FY2015 revenue, respectively. 

For 1QFY2016, revenue surged 17.7% y-y to RM51.5 million while net profit jumped 26.2% to RM6.3 million. The improved performance was mainly attributed to higher business volume from courier services for e-commerce businesses.

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