Dec 12, 2006
KUALA LUMPUR: GD Express Carrier Bhd (GDEX) anticipates at least 70% growth in its net profit for the year ending June 30, 2007, partly attributable to the increased capacity in its Petaling Jaya hub.
Executive deputy chairman and chief executive officer Teong Teck Lean said the group had a long-term lease on an adjoining industrial premises to expand its hub to more than 100,000 sq ft by end-December. The hub would be automated to enable GDEX to increase capacity three-fold.
We will be doing better this year and expect our top line and bottom line to improve, as shown in our first quarter (financial results).
We are targeting top line to grow between 20% and 30% in the current financial year. As for the bottom line, we expect to hit between 70% and 100% due to the additional capacity, he told reporters after the company's AGM yesterday.
For its first quarter ended Sept 30, revenue grew 31% to RM13.8mil from RM10.5mil in the previous corresponding quarter. Net profit jumped 191.1% to RM559,000 from RM192,000 a year ago.
GDEX will invest about RM9mil to lease the additional premises and upgrade its hub this year.
Teong said GDEX presently had 4% share of the total market. Although the domestic market remained its core focus, it would open an office in Singapore next month.