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DNeX delivers considerable profit despite challenging FY 2019

Cyberjaya, 25 February 2020 – Dagang Nexchange Berhad (“DNeX”) has delivered considerable results for the full year ended 31 December 2019 (“FY 2019”) with revenue mainly driven by its information technology (“IT”) and eServices segment.

In FY 2019, the Group recorded RM290.5 million in revenue from RM293.5 million in the financial year ended 31 December 2018 (“FY 2018”). DNeX’s FY 2019 profit after tax (“PAT”) stood at RM35.5 million as compared to RM51.9 million in FY 2018.

The marginally lower revenue is mainly due to work done on submarine cable installation and repair project in Indonesia, lower progress billings in the Group’s system integrator business, and lesser revenue from the Vehicle Entry Permit and Road Charges contract.

However, this was partially offset by the Road to Makkah project, an on-site facilitation and communications connectivity for Malaysian and Indonesian pilgrims project. The Group’s Trade Facilitation and eCommerce unit remain strong which records a sustainable annual revenue growth of five per cent.

DNeX’s Energy division showed a 15.8 per cent increase in revenue mainly contributed by its new businesses namely the retail downstream PETRONAS Outdoors Payment Terminals Project as well as maintenance and piping works.

The Group’s profit was meanwhile affected by a reduction in gross profit margin of seven per cent and low contribution from Ping Petroleum Limited.

DNeX’s financial position however remains healthy with total assets at RM627.5 million. Net assets per share increased year-on-year to 27 sen while its gearing level stood at 0.14 times, which provides ample room to fund expansion plans.

“The Group has maintained a satisfactory performance for FY 2019 despite challenges in the IT and Energy industries as well as weakening global trade conditions. Moving forward, we will continue to build on our achievements and expertise to drive growth while pursuing cost optimisation activities to drive operational efficiency and ensure earnings sustainability,” said Datuk Samsul Husin, Executive Deputy Chairman of DNeX.

“We believe the current markets still represent growth opportunities and pockets of value for DNeX. We will continue to focus on our core businesses and at the same time develop sustainable revenue lines by exploring opportunities within domestic, regional and global markets,” he said.