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LETS JOIN KIM'S STOCKWATCH GROUP?
DATE : 10 November 2020
STOCK : GD EXPRESS CARRIER BHD
GDEX - Break the 1st resistance level and stay above RM0.45. Can it stay above the resistance level and move to test higher at RM0.50? As long as this counter still moving above on the support level. It definitely can move and reach RM0.50.
Current Price : 0.45 sen
Kim's Target Price:
[TP1: 0.60 sen - TP2 0.80 sen - TP3 RM1.20]
Cheap Call Warrant : "TO BE HOT CAKES"
GDEX-CS
GDEX-CT
GDEX-CU
All this Call Warrants TP's more than 0.20 - 0.30 sen ranges
TRANSPORTATION & LOGISTICS CHART
Index - Good move. If tomorrow break above 700 points. The transportation and logistics sector will rock the market. Very aggressive move and uptrend now.
WHAT I WANT TO SAY?
"GDEX mainly play due to an increase in demand for courier services during CMCO, EMCO and TEMCO as well as an increase in online purchases during all these SOP's. Flying very high very soonest!"
ABOUT GDEX
GD Express Carrier Berhad, an investment holding company, provides express delivery service in Malaysia and internationally. Its services include door to door deliveries, same day express deliveries, bulk and heavy shipment deliveries, as well as security handling, mailroom handling, project handling logistics solutions, and enhance liability coverage services. The company also offers international express carrier services, including door to door delivery to approximately 200 countries through its international service partners; and door to door or airport to airport services for bulky and heavy shipments to approximately 100 countries.
Operates a network of 410 stations: comprising 100 branches, 57 agents, 11 lodge-in centres and 242 reseller agencies throughout Peninsular and East Malaysia.
As of June 2020, GDEX has a fleet of 1300 trucks and vans and staff strength of 4384.
GDEX SERVICES & PRODUCT
1. Domestic Express Carrier
2. International Express Carrier
3. Customised Logistics Solutions
4. Logistics Services
5. Enhanced Liability
6. GDEX Prepaid
WHY THIS GDEX BECOME MY GEMS NOW?
1. STRONGER EARNINGS PROSPECTS
- Stronger earnings prospects for in FY21F-22F, due to heightened demand from the e-commerce space.
- Lower fuel costs and positive regional expansion.
- anticipates 44.5%-owned Indonesian associate SAP Express to record further rise in margins in tandem with its rapid growth traction in Indonesia.
- Since the general lockdown in mid-March, many consumers, businesses, and merchants have turned to online trading, which significantly increased the use of express delivery services. While the demand for such services increased dramatically, the cost of operations has also gone up in tandem, as express carriers adapt to the numerous structural adjustments by increasing workforce, acquisition of new vehicles, enhancement of systems and processes to accommodate the expansion of demand.
- Previous Quater Report
2. FREEZE ON NEW COURIER LICENCES FOR 2 YEARS
- Malaysian Communications and Multimedia Commission (MCMC) will not issue any new courier licences for two years.
- A new action plan will be drafted by the National Postal and Courier Laboratory Laboratory (NPCIL) to propose measures to support the strategic development of the new postal and courier industry.
- The freezing of new courier licenses will run from Sept 14,2020 until Sept 15,2022.
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NPCIL results are important for this industry, which is at the core of e-commerce activities and digital economic development. the process of drafting a new action plan by NPCIL will take three weeks, from Nov 2 to Nov 22, subject to the conditional movement control order (CMCO) by the government.
- By freezing applications, it will be easier to assess the current situation and decide on the necessary conditions to be implemented for the industry to self-regulate.
3. THE NEW NORMS AND REALITY BOOSTING THEIR SALES
- The coronavirus pandemic necessitated the implementation of preventative measures to curtail physical interaction such as social distancing, wearing of face masks and hand gloves.
- The Movement Control Order has ushered in a new reality to the way business is conducted. Many companies now require their workers either to work from home or to rotate between the office and home.
- Businesses are conducted online via social media, skype, zoom, and other similar applications.
- Many months before the outbreak of COVID-19, the company had embarked on a significant programme to revamp its operations, expand and innovate on its product offerings, revitalised its workers, and strengthened its logistical support capabilities and facilities.
- The rethinking was required given the evolving economy, rapid growth in E-commerce and increasingly competitive nature of the business and changes in consumer preferences, and emerging trends such as greater adoption of E-commerce, online trading, and E-payment gateways.
THE CONCLUSION
- With this 3 points, I foresee there's no reason this sector cant be rally and hit all my target.
- The big volumes recently is signaling and generating and ready to breach and break the records to go higher than expected.
- Lets wait and see my new GEMS perform this November till end of the year 2020.
LETS FLY & LETS ROCK!
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KIM
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