( Kang Siew Li )

LOCAL courier firm GD Express Carrier Bhd (GDEX) expects its net profit to double in the fiscal year ending June 30 2007, with an expanded and fully automated facility in PJ that enable it to handle higher business valume.

It posted a net profit of RM1.2 million on a revenue of RM45.9 million for the year ended June 30 2006.

“We expect net profit to grow by 70-100 per cent this year, with revenue growing in the range of 20-30 per cent. The better results are mainly due to additional facilities and increases in the capacity of our existing facility by threefold.” GDEX executive deputy chairman and chief executive officer Teong Teck Lean told reporters after the company’s annual general meeting in Kuala Lumpur yesterday.

In the last fiscal year, the Mesdaq-listed company invested some RM7 million to RM8 million in upgrading its existing network and infrastructure in Malaysia, which included expanding its warehouse space in Petaling Jaya by another 70,000 sq ft and automating it.

“The entire automation exercise, due for completion by the end of this month, will increase our present capacity by threefold to handle between 60,000 and 70,000 consignments per day,” said Teong.

He said in this fiscal year the company will spend some RM9 million, with investment decreasing from FY08 onwards as “most of our major investments in our hub will be completed by then”.

Meanwhile, Teong said GDEX has no plans to extend to deadline for its proposed private placement aimed to raise some RM18.9 million in funds.

It have until December 8 to implement the private placement, which was being managed by CIMB Investment Bank Bhd.

“We have decided not to extend it (the proposed private placement) because there is sufficient internal revenue to fund our expansion of the hub. Our cashflow is strong.” he said.

Domestic business now contributes 95 per cent to the group’s revenue, and the balance is from international business.

“We are not much of a competition to the international air express companies. we actually complement them. That’s because a company like Federal Express (FedEx) would not want to set up branches in all the small towns (across Malaysia).

“Likewise, for overseas deliveries, we use the services of international air express companies,”said Teong.

There are currently 105 express delivery players in Malaysia and GDEX commands a 4 per cent market share.

The leading players in this market are FedEx, United Parcel Service, DHL and TNT, which combined capture a 70 per cent market share of Malaysia’s RM1 billion express delivery business, with the rest coming from local courier players.

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