GDEX in recent years has adopted a M&A strategy to grow; first in 2018 to penetrate the Indonesia market with a 44.5 per cent stake in SAP Express, then in 2019 taking a 50 per cent stake in Netco to enter the Vietnam market.
SELANGOR: GDEX Bhd (GDEX) aims to leverage its core competency in digital innovation and technology to drive its growth going forward.
In a press statement, GDEX managing director Teong Teck Lean said: “The last 18 months during the challenging times of the Covid-19 pandemic proved to us that our time-tested business model was still able to generate more than RM100 million in revenue every quarter with healthy profitability.
“Yet, the pandemic also pointed to us that the business landscape continues to change and we cannot be complacent with our entrenched position, but must aim to leverage our core competency in digital innovation and technology to create our next growth story.”
Aside from that, it pointed out that the mergers and acquisitions (M&As) in recent years position group as prominent regional express delivery service.
GDEX in recent years has adopted a M&A strategy to grow; first in 2018 to penetrate the Indonesia market with a 44.5 per cent stake in PT Satria Antaran Prima Tbk (SAP Express), then in 2019 taking a 50 per cent stake in Noi Bai Express and Trading Joint Stock Company (Netco) to enter the Vietnam market.
The group had also, earlier in 2016, acquired a 30 per cent stake in software solutions provider Web Bytes Sdn Bhd which co-developed its logistics technology platforms.
The regional acquisitions not only diversified the group’s revenue base, but also positioned GDEX to be a regional player.
Geographically, revenue from Malaysia amounted to RM544.8 million or 85.4 per cent of the group’s 18m21 revenue.
Foreign revenue contribution from Vietnam stood at RM89.9 million or 14.1 per cent, while Singapore made up the balance RM3.4 million or 0.5 per cent of 18m21 revenue. Meanwhile, the Indonesia operations under SAP Express, contributed share of profit of associate amounting to RM7.9 million in 18m21.
The group’s express delivery segment contributed RM580.4 million or 91.0 per cent of 18M21 revenue, the logistics segment made up RM57.3 million or nine per cent, while the balance RM0.3 million was contributed by the property investment segment.
Meanwhile, GDEX said it reported net profit of RM43.0 million for the 18-month financial period ended December 31, 2021 (18M21) on revenue of RM638.1 million.
There are no comparative financials due to the change in the group’s financial year end from June 30 to December 31.
In the preceding financial period of twelve months ended 30 June 2020, the group recorded net profit of RM18.5 million on revenue of RM364.0 million.
Meanwhile, for the three months and sixth quarter ended December 31, 2021 (6Q21), the group registered net profit of RM7.4 million on revenue of RM104.7 million. Compared to the corresponding three months ended December 31, 2020, net profit rose 7.5 per cent from RM6.9 million, despite a slight moderation in revenue by 4.3 per cent from RM109.4 million.