- Stronger PAT in 1H 2018 driven by better earnings contribution across two core divisions
- Revenue surged 32 per cent to RM122.3 million in 1H 2018 from RM92.9 million a year ago
Kuala Lumpur, 6 August 2018 – Dagang NeXchange Berhad (“DNeX”) has announced a strong set of financial results for the second quarter ended 30 June 2018 (“2Q 2018”), and the six months period ended 30 June 2018 (“1H 2018”).
In 2Q 2018, revenue grew to RM51.2 million from RM49.1 million in the previous year’s corresponding quarter (“2Q 2017”) while profit after tax (“PAT”) settled at RM11.6 million as compared to RM11.7 million in 2Q 2017.
For 1H 2018, DNeX’s revenue rose 32 per cent to RM122.3 million in 1H 2018 as compared to RM92.9 million a year ago. The bulk of the Group’s revenue came from IT & e-Services division, representing 81 per cent of the total revenue, while the remaining 19 per cent was contributed by Energy division. The overall higher revenue was mainly attributed to continued growth of the Group’s business-to-business and business-to-Government services, and the consolidation of post acquisition results from Genaxis Group.
Meanwhile, 1H 2018 PAT increased 51 per cent to RM40.3 million as compared to RM26.7 million in first half 2017 (“1H 2017”).
DNeX’s robust growth in 1H 2018 financial performance was attributed to the improved earnings performance across its two core divisions.
The IT & e-Services division registered an increase of 44 per cent in profit before tax (“PBT”) to RM32.1 million against RM22.3 million in 1H 2017, contributed mainly from recurring revenue stream.
Meanwhile, PBT from Energy division almost doubled to RM10.4 million in 1H2018 from RM5.6 million in 1H2017. The improvement was mainly attributed to the increase in earnings contribution from DNeX’s associate company, Ping Petroleum Limited, which is involved in upstream crude oil production and has benefited from stronger crude oil prices.
Commenting on the Group’s financial results, Executive Deputy Chairman of DNeX Datuk Samsul Husin said, “We are pleased to note that our growth trajectory remained solid in the first half of 2018. The strong financial results are testament to our commitment in building, managing and improving our service platform eco system in Trade Facilitation, Transport and Halal eco system.”
“Moving forward, the Group remains focus on effective execution of our planned initiatives as well as exploring new opportunities by leveraging on existing business building blocks in both divisions to drive earnings resiliency and business competitiveness,” he said.
As at 30 June 2018, the Group’s net assets per share improved to 26 sen from 24 sen as at 31 December 2017.