Latest news with #GDEX
Yahoo
09-07-2025
- Business
- Yahoo
GDEX Berhad (KLSE:GDEX) shareholders have endured a 58% loss from investing in the stock five years ago
Generally speaking long term investing is the way to go. But that doesn't mean long term investors can avoid big losses. For example, after five long years the GDEX Berhad (KLSE:GDEX) share price is a whole 59% lower. That is extremely sub-optimal, to say the least. Even worse, it's down 9.4% in about a month, which isn't fun at all. Now let's have a look at the company's fundamentals, and see if the long term shareholder return has matched the performance of the underlying business. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Given that GDEX Berhad only made minimal earnings in the last twelve months, we'll focus on revenue to gauge its business development. Generally speaking, we'd consider a stock like this alongside loss-making companies, simply because the quantum of the profit is so low. It would be hard to believe in a more profitable future without growing revenues. In the last half decade, GDEX Berhad saw its revenue increase by 1.1% per year. That's not a very high growth rate considering it doesn't make profits. It's likely this weak growth has contributed to an annualised return of 10% for the last five years. We'd want to see proof that future revenue growth is likely to be significantly stronger before getting too interested in GDEX Berhad. When a stock falls hard like this, some investors like to add the company to a watchlist (in case the business recovers, longer term). The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers). We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. It might be well worthwhile taking a look at our free report on GDEX Berhad's earnings, revenue and cash flow. We regret to report that GDEX Berhad shareholders are down 11% for the year (even including dividends). Unfortunately, that's worse than the broader market decline of 6.0%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. However, the loss over the last year isn't as bad as the 10% per annum loss investors have suffered over the last half decade. We'd need to see some sustained improvements in the key metrics before we could muster much enthusiasm. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with GDEX Berhad , and understanding them should be part of your investment process. If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: many of them are unnoticed AND have attractive valuation). Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Malaysian exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
The Star
12-06-2025
- Business
- The Star
GDEX keeps up optimism as SST measures loom
PETALING JAYA: GDEX Bhd believes the newly expanded scope of the Sales and Service Tax (SST), which comes into effect on July 1, will 'definitely have an impact' on its business and those of its peers, says its managing director and group chief executive Teong Teck Lean. However, on the bigger picture, he remains optimistic that the courier services provider will be able to keep up with its improving performance trend, aided by the group's change in business strategy to a more collaborative one. Speaking to a select media group after GDEX's AGM yesterday, Teong acknowledged that the group is still assessing the overall impact of the expanded SST, especially its inclusion of leasing services at a rate of 8% for companies with annual leasing revenue above RM500,000. 'We are actually leasing many of the premises that we use, some on long leases, and so definitely there will be an effect there because the earlier contracts that were signed between us and our landlords have obviously not included this tax,' he said. As such, the group would need to work out how to navigate this new expense with all related parties, and look for ways to absorb the payment of the SST. Moving forward, Teong commented that GDEX is much more optimistic of its performance this year, banking on a more collaborative strategy with partners and competitors alike, as well as the company's determination to keep exploring and navigating for better growth opportunities. In its latest results release for the first quarter of financial year ended March (1Q25), GDEX remained in the red with a net loss of RM164,000, although this represented a significant year-on-year (y-o-y) improvement from 1Q24 where the group saw a net loss of RM2.2mil. It is also notable that for the financial year ended 2024 (FY24), GDEX's net loss narrowed considerably y-o-y from RM34.9mil in FY23 to RM1.8mil, while also posting a net profit of RM4.8mil for 4Q24 itself. On top of that, GDEX reported an earnings before interest, tax, depreciation and amortisation of RM53.4mil last year, with net cash reserves of RM197.2mil. The group's shareholders also approved the distribution of a final single-tier dividend of 0.2 sen per share for FY24 at yesterday's AGM, before announcing that it had earmarked RM20mil of its cash for strategic acquisitions this year, in an effort to further broaden its GD Exchange ecosystem. Teong however, reiterated that the group is maintaining its highly selective approach to potential acquisition targets, emphasising that there has to be a synergistic value to the company's core business. 'The most important thing is that the companies we acquire must follow our business direction, and as such we would always prefer to obtain a controlling stake in such transactions to achieve seamless integration,' he added. Furthermore, he revealed that GDEX had invested RM8mil into enterprise resource planning, on top of remarking that the group continues to find it necessary to invest into technology and artificial intelligence as well as environmental, social and governance (ESG) initiatives. However, he stressed that such investments, especially into ESG, has to offer attractive returns on investment (ROI), citing the example of the group's usage of electric trucks for short distance deliveries within the Klang Valley that mitigates the effect of the rising prices of diesel. Separately, he said GDEX also plans to liquidate its non-core assets, including a property in Ipoh, pointing out that the move jives with the group's focus on cost optimisation and digitalisation, This would allow the company to allocate funds to more essential areas with higher ROI such as technology, talent acquisition, and infrastructure integration.
