GDEX is a beneficiary as a pure play courier service provider
Price (17 Mar 2017)
RM1.86
•
Further expansion in the pipeline
Target Price
RM2.28
•
GDEX is nurturing its investment in Indonesia
Expected Share Price Return
+22.6%
•
We maintain our BUY call on GDEX with a higher TP of RM2.28
Malaysia set to become a regional E-commerce hub. The e-
Expected Dividend Yield
0.3%
Expected Total Return
+22.9%
commerce sector is likely to benefit from government initiatives including the Digital Free Trade Zone (DFTZ) and the National E-commerce Strategic Roadmap. The DFTZ will be launched this week in conjunction with
STOCK INFO
Alibaba’s founder, Jack Ma’s visit to Malaysia. Incentives that could be
KLCI
1,745.20
unveiled include: Bursa / Bloomberg
1) Tax holidays for e-commerce platforms (Lazada, Zalora and Alibaba) that establish their regional distribution hubs in Malaysia,
Board / Sector
0078 / GDX MK Main/ Trading Services
Syariah Compliant
Yes
Issued shares (mil)
1,383.2
2) Tax exemption for goods priced 15% over the next 12 months. Stock price is expected to rise by >15% within 3-months after a Trading Buy rating has been assigned due to positive newsflow. Total return is expected to be between -15% and +15% over the next 12 months. Total return is expected to be 15% within 3-months after a Trading Sell rating has been assigned due to negative newsflow.
SECTOR RECOMMENDATIONS POSITIVE
The sector is expected to outperform the overall market over the next 12 months.
NEUTRAL
The sector is to perform in line with the overall market over the next 12 months.
NEGATIVE
The sector is expected to underperform the overall market over the next 12 months.
