Bursa Annual Report
Period : 2006-2022
Date : 5th Jan 2022
Researcher : Esther Low
Y-o-Y revenue for Bursa listed e-commerce logistics companies (2010-2020)
Bursa listed e-commerce logistics companies have historically experienced continuous
revenue growth since 2010 up till 2017. Within 7 years, revenue grew from RM 1.14 billion
to RM 2.8 billion in 2017 (approximately 146.23%). From 2017 onwards till 2020, revenue
however remain stagnant at around RM 2.6 – RM 2.7 billion.
The main driver of higher revenue growth through 2010-2020 is attributed to the strong
revenue growth in Pos Malaysia Berhad. However, it is also important to note that Pos
Malaysia Berhad has multiple sources of revenue and has a diversified portfolio in
comparison to GD Express and Nationwide Express who are focused on e-commerce logistics. Pos Malaysia Berhad has managed to grow their revenue from RM 964 million in
2010 to RM 2.4 billion in 2017 (up 154.4%) before hovering in the range of RM 2.2 – RM
2.4 billion. According to Kenanga Research, Pos Malaysia’s postal segment could improve
on higher e-commerce demand but will operate in a competitive environment pressured by
price and cost challenges.
GD Express has also experienced a steady growth in revenue from 2010 till 2020. In 2010,
the company’s revenue was only RM 86 million but increased to RM 410 million in 2020
(up 374.7%). GD Express continuous growth in revenue is attributed to the strategic
expansion of their various business streams and regional expansion according to the group
CEO, Mr Teong Teck Lean. The group is also doubling warehouse space by signing a 15-year
lease agreement with Sapura Resources Bhd. The group CEO however warned that the e-
commerce logistics market is becoming incredibly competitive due to the presence of more
local last-mile logistics companies such as NinjaVan, LalaMove and more.
Nationwide Express meanwhile has experienced diminishing revenue within the same
period. In 2010, the group posted a revenue of RM 91 million however by 2020, revenue
has drop by 47% to RM 48 million in 2020.
Drilling down on the PBT, Pos Malaysia’s PBT was growing from 2010 up till 2014 before
experiencing diminishing PBT and eventual losses of up to RM 300 million in 2019 and
2020 respectively. The large losses of RM 375 million in 2019 was mainly from a one-off
aircraft redelivery expense and continued Postal Services loss, which was worsened by the
increased cost of international mail charges and staff cost, according to the CFO of Pos
Malaysia, Mr Azlan bin Ash’ari in Pos Malaysia’s 2019 annual report. Losses in 2020 was reduced on the back of higher number of parcel volume which contributed 75% of the
group revenue (RM 1.7 billion) in 2020 alone.
GD Express meanwhile has posted positive PBT from 2010 up till 2020. The group posted
its highest PBT of RM 47 million in 2018 before dipping by half to RM 22 million in 2019
and RM 28 million in 2020 due to the group’s continuous expansion efforts. In 2019, GDEX
expanded operations by commissioning 192 new trucks while also shifting their
warehousing and customized logistics services to a bigger modern facility in Shah Alam.
They have also expanded its sorting hub to cater for the volume growth in the e-commerce
The expansion efforts in 2019 continued in 2020 as GDEX increased its number of retail
outlets and commissioned another 16 new trucks bringing their total vehicles in service to
1,277. GDEX is also exploring expanding its presence in other countries by acquiring 50%
of Noi Bai Express & Trading in Vietnam. Despite the diminishing PBT, the foresight of
expanding sorting hubs, warehousing and fleet size has put GDEX in a strategic position to
capture a higher revenue growth due to the boom in parcel volumes.
The e-commerce logistics market is an untapped opportunity for intra-Asia trade.
According to Bain & Company’s annual e-commerce report, the Southeast Asia digital retail
market grew by 85% by end of 2020 and is expected to account for 57% of the growth in
the global e-commerce logistics market between 2020 and 2025. Mckinsey reported that
for the first quarter of 2021, start-ups, and mergers and acquisitions of logistics sector in
Asia attracted up to $25 billion and it is very likely that more stiff competition will arise in
the e-commerce logistics market each year.
Some of the key startups that are venturing into SEA markets includes Alibaba’s express
logistics arm, Cainiao. Cainiao has announced plans to expand its warehouse network in
key countries across SEA such as Vietnam, Indonesia, Malaysia and Singapore. In Malaysia,
the Chinese logistics giant together with Malaysia Airports has established a new e-
fulfilment hub at the end of 2020. The e-fulfilment hub is expected to facilitate 24-hour
delivery within Malaysia and 72-hour delivery to the rest of the world. The Cainiao
Aeropolis eWTP Hub provides a 1.1 million sqft of warehouse space capable to hold a cargo
volume of 1.4 million metric tons by 2029.
Another key startup is J&T Express which was founded in Indonesia in 2015. J&T Express
has recorded an exponential growth since its inception and is now present in 10 countries including China, Indonesia, Vietnam, Malaysia, Thailand, Philippines, Cambodia, Singapore
and UAE. Since 2020, the company recorded a double-digit growth in parcel volumes and
expanded its total warehouse size by three-fold. For the company to expand in the Chinese
logistics market, it has acquired Best Express which is one of the main logistics providers
for Alibaba group in the last 10 years. J&T Express is backed by gaming and internet giant,
Closer to home, Ninja Van was founded in Singapore and now covers six countries in SEA. It
has recently unveiled its newest warehouse located in Shah Alam that spans 260,000
square feet. The expansion is in line with the company’s plans to capture volume growth
and support local SMEs and businesses who are now turning to e-commerce platforms.
Ninja Van’s rapid expansion is backed by several major investors including Alibaba Group,
DPD Group (Dynamic Parcel Distribution Group) and Facebook’s co-founder Eduardo
Savering. DPD Group, who is owned by La Poste, France’s national postal service provider
owns a 40% stake in Ninja Van. According to the French postal service provider, the stake
acquisition is a strategic plan to reinforce its footprint in the SEA markets. As of 2019, Ninja
Van has a fleet size of 15,000 vehicles with 800 logistics hub throughout the SEA region.
The e-commerce logistics industry will be a very competitive one in the years to come. The
presence of smaller, agile and price conscious startups will pose a problem to big players
such as Pos Malaysia and GDEX who have been around longer. The two companies will face
increasing competition to capture volumes at a low price without comprising on high
quality of service. Knowing that, companies such as GDEX are now actively looking to
expand facilities and network in different countries to stay relevant and competitive.
Meanwhile foreign players in the e-commerce platforms or in postal services industry such
as Alibaba, Tencent, Grab, and DPDGroup will attempt to break into the SEA e-commerce
logistics market through fundings of successful startups. It is also not out of the books for e-
commerce giants like Alibaba to acquire successful e-commerce logistics startups who have
managed to expand its reach rapidly in the SEA region.