GDex up on solid 3Q earnings

KUALA LUMPUR (May 10): GD EXPRESS CARRIER BHD [] shares advanced on Thursday afer its net profit jumped 61.07% for its third quarter ended Mar 31 to RM2.11 million from RM1.31 million a year ago, due to an increase in business volume and growth in its customer base.

At 9.08am, GDex rose three sen to RM1.04 with 8,000 shares done.

In a statement on Bursa Malaysia on Wednesday, it said that its revenue for the quarter increased 24.49% to RM28.77 million from RM23.11 million.

Earnings per share were 0.82 sen compared to 0.51 sen a year ago, while net assets per share was 19 sen.

GDex attributed its strong performance to an increase in both business volume and growth of its customer base.

It added that the completion of a transshipment hub upgrading at the end of its first quarter had also helped support the increased business volume and handling capacity increased almost three fold in its third quarter.



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GDex 3Q net profit jumps 61% to RM2.11m

KUALA LUMPUR (May 9): GD EXPRESS CARRIER BHD []'s (GDeX) net profit jumped 61.07% for its third quarter ended Mar 31 to RM2.11 million from RM1.31 million a year ago, due to an increase in business volume and growth in its customer base.

In a statement on Bursa Malaysia on Wednesday, it said that its revenue for the quarter increased 24.49% to RM28.77 million from RM23.11 million.

Earnings per share were 0.82 sen compared to 0.51 sen a year ago, while net assets per share was 19 sen.

GDex attributed its strong performance to an increase in both business volume and growth of its customer base.

It added that the completion of a transshipment hub upgrading at the end of its first quarter had also helped support the increased business volume and handling capacity increased almost three fold in its third quarter.

The group said it had also adjusted its handling fee since in the previous quarter to cushion the rise it its operating costs, adding that it continues to be cautious in controlling its costs.

In the nine months ended Mar 31, it recorded a 25.31% increase in revenue to RM84.92 million from RM67.77 million a year earlier while net profit rose 39.42% to RM5.80 million from RM4.16 million.



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Stocks to watch: Amway, Prestariang, Can-One, Mulpha Intl

KUALA LUMPUR (Feb 15): Stocks on Bursa Malaysia could see cautious trade after the FBM KLCI snapped its two-days of gains despite the firmer broader market.

However, lending support could come from the better-than-expected economic numbers where the fourth quarter 2011 GDP expanded at 5.2%. Economists had expected the 4Q2011 GDP to have expanded 4.5% on-year, driven by upbeat domestic demand.

Among the stocks to watch are Amway (Malaysia) Holdings Bhd, Prestariang Bhd, CAN-ONE BHD [] and Mulpha International following the latest corporate developments.

Amway’s net profit for the fourth quarter ended Dec 31, 2011 rose 36.1% to RM24.93 million from RM18.31 million a year earlier, due mainly to improved gross margin arising from the lower cost of products and lower operating expense.

Amway declared a fourth interim single tier dividend of nine sen net per share for the financial year ended Dec 31, 2011, to be paid on March 30, 2012. The company was adopting a dividend payout ratio of no less than 80% of the company’s current year net earnings from the financial year 2012.

For the financial year ended Dec 31, Amway’s net profit was up 14.9% to RM89.99 million from RM78.32 million in 2010, while revenue rose to RM735.81 million from RM719.41 million.

Prestariang posted net profit of RM10.55 million in the fourth quarter ended Dec 31, 2011, underpinned by strong demand for its information communications TECHNOLOGY [] (ICT) training. Its revenue was RM32.63 million. Its earnings per share were 4.80 sen. It proposed a final single-tier dividend of 4.0 sen per share.

For the financial year ended Dec 31, 2011, it reported net profit of RM33.61 million on the back of RM111.75 million in revenue.

The legal tussle between Can-One Bhd and Kian Joo Holdings Sdn Bhd resumed. The former managing director of KIAN JOO CAN FACTORY BHD [] (KJCF) Datuk See Teow Chuan and 13 others have filed an application seeking the review of the Federal Court ruling that gave the nod for Can-One to buy the 32.9 pct stake of KJCF.

Mulpha expects to record a one-off gain of about RM57.35 million from the sale of its 75% stake in Hong Kong listed Manta Holdings Company Ltd for HK$285 million (RM111.15 million).

Mulpha said its unit Jumbo Hill Group Ltd had on Tuesday entered into a sale and purchase agreement with Eagle Legend International Holdings Ltd to dispose of the stake, comprising of 150 million shares, at HK$1.90 a share.

Meanwhile, DENKO INDUSTRIAL CORPORATION [] Bhd saw Green Power Resources Ltd increasing its stake in the company. Green Power, which is based in Singapore, acquired 9.0 million shares in Denko on Feb 9 and increased its shareholding to 13.14% or 13.72 million shares. The shares were disposed of by Yong Boon Cheong at 30 sen each.

GD EXPRESS CARRIER BHD []'s net profit for the second quarter ended Dec 31, 2011 rose 30% to RM2.11 million from RM1.62 million a year earlier, due mainly to growth in customer base and increase in business from existing customers.



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GD Express 2Q net profit up 30% to RM2.11m

KUALA LUMPUR (Feb 15): GD EXPRESS CARRIER BHD [] net profit for the second quarter ended Dec 31, 2011 rose 30% to RM2.11 million from RM1.62 million a year earlier, due mainly to growth in customer base and increase in business from existing customers.

It said on Wednesday that revenue for the quarter rose 28% to RM29.87 million from RM23.33 million in 2010.

Earnings per share increased to 0.82 sen from 0.63 sen a year earlier, while net assets per share was 20 sen.

For the six months ended Dec 31, GD Express registered a 29% increase in net profit to RM3.68 million from RM2.86 million in 2010 on the back of a 25.73% rise in revenue to RM56.15 million from RM44.66 million.

Reviewing its performance, GD Express said the completion of its transshipment hub upgrading at the end of the preceding quarter was timely to support the increased business volume as the handling capacity was increased almost three fold.

The high capacity helped to overcome bottleneck in the operational process and thereby leading to improvement in service quality, it said.

The company said the improvement in its results was also due to higher business volume, in line with the seasonal factor in which the quarter was experiencing the year-end effect, which usually saw higher movement of goods and services, as well as better cost control.

On its outlook, GD Express said it expects the domestic economy to remain healthy, with the implementation of various government initiatives.

“However, the Malaysia economy and the express carrier industry may face serious slow-down if the world economy situation deteriorate further.

“The group will continue to focus on its core business in improving service quality and gain greater trust from the customers,” it said.



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KLCI trends higher at mid-morning, breaches 1,480-level

KUALA LUMPUR (Dec 21): The FBM KLCI trended firmly higher at mid-morning on Wednesday as China and Taiwan stepped in to support their respective stock markets, while encouraging data released overnight in the US and Germany gave Wall Street a much-need boost.

At 10am, the FBM KLCI was up 17.24 points to 1,482.41, lifted by gains at select blue chips.

Gainers led losers by 333 to 103, while 219 counters traded unchanged. Volume was 361.54 million shares valued at RM215.54 million.

China's National Social Security Fund (NSSF) plans to spend around 10 billion yuan ($1.58 billion) to boost local stocks, the Shanghai Securities News reported on Wednesday, according to Reuters.

Meanwhile, Taiwan's government has authorised a state fund to step into the stock market to support prices, citing recent declines in the benchmark index and the impact of global economic uncertainties, it said.

At the regional markets, Japan’s Nikkei 225 rose 1.54% to 8,464.94, Hong Kong’s Hang Seng Index added 2% to 18,441.51, the Shanghai Composite Index was up 0.47% to 2,226.43, Taiwan’s Taiex jumped 3.93% to 6,924.80, South Korea’s Kospi added 2.84% to 1,844.03 and Singapore’s Straits Times Index rose 1.54% to 2,654.76.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients Dec 21 said the FBM KLCI’s resistance areas of 1,470 and 1,510 could cap market gains, whilst the obvious support areas may be located at 1,449 and 1,465.

“Due to the US markets’ buoyant tone last night, we may have a gap-up day followed by profit-taking today,” he said.

Among the gainers at mid-morning, BAT added 70 sen to RM48.70, HLFG 24 sen to RM11.66, PPB and Genting 22 sen each to RM16.92 and RM10.58, GD Express 21 sen to RM1.19, KAF, BHIC and Dutch Lady 18 sen each to RM1.66, RM3.36 and RM23.58 respectively, while Tradewinds PLANTATION []s added 17 sen to RM4.48.

Among the decliners, Batu Kawan fell 20 sen to RM17, Uzma 13 sen to RM1.57, Nestle 10 sen to RM56.20, MPI eight sen to RM2.65, Ho Hup down 7.5 sen to 61.5 sen, MGRC seven sen to 62 sen, Vastalux 5.5 sen to 3 sen, IGB five sen to RM2.37 and Dijaya Corp four sen to RM1.37.

The actives at mid-morning included JCY, TMS, Vastalux, Nova MSC, Focus and Maxbiz.



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Stocks to watch: Gamuda, Boustead, GDex, TDM

KUALA LUMPUR (Dec 17): Regional markets including Bursa Malaysia are expected to see cautious trade in the week ahead, starting Dec 19 with volume continuing to thin during the holiday season while investors’ sentiment is expected to be dampened by the eurozone debt crisis.

On Wall Street, a rally in stocks fizzled, leaving major indexes with modest gains on Friday, as Wall Street was torn between hope that U.S. economic data signals better times ahead and fear Europe's debt crisis will engulf world economies, Reuters reported.

The Dow Jones industrial average fell 2.42 points, or 0.02%, at 11,866.39. The Standard & Poor's 500 Index was up 3.91 points, or 0.32%, at 1,219.66. The Nasdaq Composite Index was up 14.32 points, or 0.56%, at 2,555.33.

Meanwhile, credit rating agency Fitch told euro zone countries it believed a comprehensive solution to their debt crisis was beyond reach, putting six euro zone economies including Italy on watch for potential downgrades in the near future,

At Bursa Malaysia, stocks to watch include GAMUDA BHD [], BOUSTEAD HOLDINGS BHD [], GD EXPRESS CARRIER BHD [] (GDex), TDM BHD [] and Top Glove Corp Bhd.

Gamuda is upbeat about the outlook for its prospects for the remaining financial year after its earnings climbed 49.5% to RM132.32 million in the first quarter ended Oct 31, 2011, from RM88.53 million a year ago due to higher contributions from all divisions.

The infrastructure-based company expected a stronger performance this year supported by its ongoing CONSTRUCTION [] projects, continued strong property sales and steady earnings from the water and expressway divisions.

Boustead’s subsidiary Boustead Naval Shipyard Sdn. Bhd has received the letter of award from the Ministry of Defence (Mindef) to supply six patrol vessels with a contract ceiling of RM9 billion.

The Edge weekly reported in its latest issue that GDex is bolstering its position to fight competition. The local express delivery provider is drawing up strategic plans on multiple fronts to deal with the increasing competition and gloomy economic outlook for 2012.

The Edge also reported that the rehabilitation of estates is paying off for TDM. It has been an exceptional year for the PLANTATION [] company as its net profit for the first nine months of FY2011 already exceeds that of any full year in the past.

Top Glove’s earnings fell 12.81% to RM31.43 million in the first quarter ended Nov 30, 2011 from the RM6.05 million a year ago impacted by higher raw material prices and the oversupply in the industry

However, the world’s largest glove maker performed better when compared with the preceding quarter in terms of revenue and earnings. It revenue rose 2.4% to RM554.84 million from RM541.84 million in the preceding quarter, while net profit increased 21.5% to RM32.46 million from RM26.82 million.

Commenting on the results, CIMB Equities Research said Top Glove’s 20.5% on -quarter rise in net profit, though strong, was expected.

“It came primarily from cost deflation as demand remained weak and industry overcapacity is still an issue. At 23.2% of our forecast and 20.2% of consensus, 1Q results were broadly in line as we expect stronger quarters ahead. We maintain our Underperform rating and target price, still based on 13.05 times price-to-earnings,” it said.



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GDEX still eyeing regional plans

KUALA LUMPUR: Although GD Express Carrier Bhd’s (GDEX) earlier plans to expand to Laos did not materialise, the express delivery and logistics services provider is still eyeing regional expansion as competition heats up in the domestic courier segment.

GDEX CEO and executive director Leong Chee Tong said yesterday the group had been looking for opportunities in Southeast Asia, with Indonesia being a potential destination in the near term.

The ACE Market-listed company is in preliminary discussions with potential local partners in Indonesia and other neighbouring countries, Leong told The Edge Financial Daily after the GDEX AGM yesterday.

Leong said GDEX would likely team up with local partners in countries in Southeast Asia as direct entry appeared a less probable model.

“The form of collaboration would depend on the situation and conditions in the respective countries,” Leong said.

GDEX first revealed its regional aspirations in early 2009 when it entered into a memorandum of understanding with Laos’ national postal operator Entreprise Des Postes Lao.

Entreprise Des Postes Lao and GDEX had concluded feasibility studies and worked on proposals for a prospective strategic partnership but the initial talks did not bear fruit.

Leong: There are big opportunities in the Iskandar Malaysia region.

“For the past few years, we have been working hard on Laos but we did face some hindrance there. Maybe the timing was not right. There are some changes in the country,” Leong said.

Nevertheless, GDEX is still awaiting opportunities for its Laotian plans in the future, he said.

When asked, Leong said GDEX could also team up with its substantial shareholder, Singapore Post Ltd (SingPost), for the group’s regional expansion plans.

“I won’t rule out going regional with SingPost. But I think we will first look at what we can do together in Malaysia.

“Singapore is a saturated market, SingPost doesn’t need us there. It is more for expanding here or in the region,” Leong said.

SingPost emerged as a strategic investor of GDEX on March 15 after it increased its stake in GDEX to 27.08% from the initial 4.98%.

According to the website, GDEX operates a network of 96 stations which comprise 53 branches, two affiliate stations and 41 agents throughout East and West Malaysia.

It is currently assuming the role of SingPost’s local partner, delivering the Singapore postal operator’s express shipments to Malaysia.

But there are plans to deepen the working relationship into other areas of cooperation.

Leong pointed out that there are gaps in the services sector which GDEX could fill, such as in warehousing and logistics management.

Anticipating growing demand for integrated logistics services, GDEX last year boosted its warehousing facilities and developed its freight handling resources to complement its core business of express delivery service. The group has leased a 59,886-sq ft warehouse and invested in upgrading its infrastructure and handling capacities.

In GDEX’s 2010 annual report, the group noted that although these investments would initially affect the group’s bottom line, it is essential to propel GDEX to become a total logistics solution provider.

Leong is upbeat that GDEX and SingPost can leverage on the warm diplomatic ties and flourishing trade between Singapore and Malaysia.

He noted that some Singapore-based businesses had already moved their operations headquarters and production base to Malaysia.

“There are big opportunities in the Iskandar Malaysia region in Johor. It is good that we talk now (to SingPost). When the time is ripe, we are ready,” Leong added.


This article appeared in The Edge Financial Daily, December 8, 2011.




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GD Express 1Q net profit up 27.4% to RM1.58m

KUALA LUMPUR (Nov 24): GD EXPRESS CARRIER BHD [] net profit for the first quarter ended Sept 30, 2011 rose 27.4% to RM1.58 million from RM1.24 million a year earlier, due mainly to higher demand for courier and logistics services.

The company said on Thursday that its revenue for the quarter increased 23.3% to RM26.28 million from RM21.32 million in 2010.

Earnings per share was 0.62 sen compared to 0.48 sen a year earlier, while net assets per share was 19 sen.

Reviewing its performance, GD Express said the favorable performance was attributed by higher demand for courier and logistics services, in tandem with the growing outsourcing trend in the business environment.

The company said that in response to external demand, it had invested further in infrastructure, processes and people to facilitate higher business growth and improved performance.

On its prospects, GD Express said it expects the domestic economy to remain healthy, with the implementation of various government initiatives.

However, the recent liberalisation of courier industry brought in new foreign entrants to the local market which intensify competition, it said.

“The group will continue its key focus in improving service quality and gain greater trust from the customers.

“Barring unforeseen circumstances, the board is of the opinion that the group’s prospects will remain positive,” it said.



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