KUALA LUMPUR (Aug 29): GD Express Carrier Bhd's (GDex) fourth quarter ended June 30, 2017 (4QFY17) net profit dipped 12% year-on-year to RM11.51 million from RM13.02 million.

GDex said in a filing today that the decline was mainly due to "expansion of network to cater to higher demand of express delivery by e-commerce business".

Higher courier services demand for e-commerce business, meanwhile, lifted quarterly revenue up 10% y-o-y to RM64.87 million from RM58.86 million.

The same factor spurred its full year FY17 earnings improvement, with net profit growing 7% y-o-y to RM36.83 million from RM34.44 million, as revenue climbed 14% to RM250.51 million from RM219.76 million.

The group's board recommended a final dividend of 0.0025 sen per share in respect of its FY17, to be paid on a date to be fixed once shareholders give the greenlight.

On prospects, GDex said it expects intensified competition in the express delivery market between existing and new players, "with some impact on business margins".

"However, the group will continue to invest in resources and infrastructure to expand its domestic and regional network," it said, adding that the group is also on the lookout for investment opportunities to increase competitiveness.

GDex shares closed unchanged at 67.5 sen today, giving it a market capitalisation of RM3.76 billion.