GD Express Carrier Bhd (GDex) will implement several strategies to position itself to capitalise on the company’s high growth phase and consolidate its market share in the RM1 billion per annum courier industry.
Among the strategies are the deferment of dividend payments to finance expansion, increasing its regional presence and acquisition of a transhipment hub and operational headquarters.
GDex chief executive officer Teong Teck Lean said the company currently has a 4% market share and anticipates a healthy double-digit revenue growth next year as it expands its customer base.
The courier company had reported an improved set of results despite uncertainties in the global and domestic economy and escalating fuel prices that adversely affected the transport sector, he told reporters after GDex’s AGM in Kuala Lumpur yesterday.
Going forward, he said customised logistics solutions would be a priority as it presented ample business opportunities for GDex as companies begin outsourcing their delivery and business processes.
Among its clients for customised logistics solutions are Federal Express (M) Sdn Bhd (FedEx) which outsourced its domestic delivery services to GDex, and DiGi Telecommunications Sdn Bhd for which GDex delivers point of sales materials to DiGi and handphone sales outlets nationwide.
Teong said the company was also on track to increase its nationwide network of stations and fleet to serve customers, and was constantly on the lookout for expansion opportunities. It currently has 75 stations of which 39 are its own branches while the others are its agents.
They also have a fleet of 180 trucks.
At the AGM,shareholders approved proposals to defer dividend payments, a private placement of up to 10% of its paid-up capital and also a one-for-four bonus issue.
Teong said the private placement was expected to raise up to RM20 million to finance the group’s expansion plans.