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DNeX bullish on growth with strategic investments

Cyberjaya, 25 May 2021 – Dagang NeXchange Berhad (“DNeX”) has announced its financial results for the fifth quarter ended 31 March 2021 (“5Q FY2020”). The Group is reporting its fifth quarter and cumulative 15-month results in line with the change in the Group’s financial year end from 31 December to 30 June which was announced on 15 February 2021.

During the quarter under review, DNeX posted RM45.1 million in revenue and RM2.2 million in profit after tax and non-controlling interest (“PATNCI” or “net profit”). DNeX’s IT & eServices operations remained its main revenue generator, contributing RM32.1 million or 71.2 per cent of total revenue in 5Q FY2020. The remaining revenue was contributed from the Energy segment, accounting for 28.8 per cent or RM13.0 million in 5Q FY2020.

For the cumulative 15 months period ended 31 March 2021, the Group registered a revenue of RM284.6 million and net profit of RM3.3 million respectively. During the period, the Group’s revenue was mainly derived from the IT & e-Services businesses, 69.5 per cent of the total or RM197.8 million, while the Energy segment contributed RM86.8 million or 30.5 per cent of the Group’s revenue. Share of results of associates stood at RM10.8 million.

“It was a challenging yet defining year for DNeX as we recalibrated our key focus areas and transformation plans for growth. Our expansion is aimed at growing DNeX into a technology player capable of competing in the global marketplace. Hence, we have been pursuing opportunities that can add value to the existing building blocks available within the Information Technology and Energy segments and focusing on the execution of planned initiatives which will further expand and strengthen sustainable sources of revenue for the Group. At the same time, it allows us to diversify our revenue concentration beyond government concession projects,” said Dato’ Sri Syed Zainal Abidin Syed Mohamed Tahir, Group Managing Director of DNeX.

“Our next focus will be to drive synergies and integration between the new business additions and our existing operations. There are pockets of opportunities to be unlocked such as cross selling of products and transfer of knowledge to boost business efficiencies within the Group,” he said.

He added that the Group is upbeat on the outlook ahead underpinned by the rising adoption of digitalisation as well as improving oil prices while the shortage of chips globally is favourable to the Group’s entrance into the semiconductor sector via its proposed acquisition of SilTerra Malaysia Sdn Bhd.

In addition, he said Brent crude oil prices which have been on a steady rise and are currently trading at levels above USD60 per barrel augur well for the Group’s proposed increase of its stake in Ping Petroleum Limited (“Ping”) to 90 per cent from 30 per cent currently.

On the back of the positive development, Ping is also exploring opportunities to unlock its untapped potential and maximise economic value from its asset portfolio, he said, adding that overall, the operating landscape in the new fiscal year is expected to improve supported by market optimism arising from the roll out of Covid-19 vaccines programmes globally.

The next audited financial statements will be for a period of 18 months from 1 January 2020 to 30 June 2021. Due to the change, there are no comparative figures disclosed for the preceding year corresponding period.

Dato’ Sri Syed Zainal Abidin Syed Mohamed Tahir,Group Managing Director of DNeX said next focus will be to drive synergies and integration between the new business additions and existing operations.