KUALA LUMPUR (Aug 29): Dagang NeXchange Bhd (KL:DNEX) has posted a net profit of RM4.99 million for the second quarter ended June 30, 2024 (2QFY2024) on a revenue of RM298.11 million.
There are no comparative figures as the company has changed its financial year end to Dec 31, from June 30, the group said in a bourse filing.
On a quarter-on-quarter basis, net profit dropped 65.48% from RM14.46 million in 1QFY2024, primarily due to weaker performances in the information technology (IT) and energy segments. Revenue decreased 3.79% from RM309.82 million.
DNeX did not declare any dividend for 2QFY2024.
Quarterly profit before tax (PBT) for the IT segment declined 98% to RM179,000 from RM9.69 million in 1QFY2024. The decrease was impacted by a net unrealised foreign exchange loss of RM5.6 million in its subsea telecom divisions due to the weakening of the rupiah against the ringgit. Revenue for the IT segment fell 24% to RM49.95 million from RM65.93 million.
The energy segment's PBT dropped 58% to RM11.99 million from RM28.39 million in 1QFY2024, while revenue declined 13% to RM91.95 million from RM105.93 million.
For the cumulative six months ended June 30, DNeX registered a net profit of RM19.45 million on a revenue of RM607.93 million.
Aside from the one-year contract extension from the government to continue as the service provider for the National Single Window (NSW) — a role the group has held since 2009 — DNeX said it is exploring the development of other trade facilitation solutions to further enhance export and import activities in the country.
“Building on our successful project implementations such as the NSW, Integrated Government Financial and Management Systems (iGFMAS), and the Inland Revenue Board of Malaysia’s Hasil Integrated Taxation Systems (HITS), we are strategically positioned to contribute significantly to the government’s MyDIGITAL agenda, which aims to transform Malaysia into a high-income nation.
“To further enhance our capabilities in offering robust and latest technologies, we plan to forge strategic partnerships with leading global IT companies. Our focus is on securing large-scale IT and digitalisation projects across public and private sectors, both locally and internationally. In the Middle East region (Kuwait, Saudi Arabia, Qatar), we are pursuing opportunities in smart port, e-government services, and system integration projects,” the group said.
For the energy segment, DNeX said its immediate priority is reactivating the Abu Cluster, aiming to achieve first oil production by 2025 with an estimated output of 2,500 barrels per day. This expansion aligns with its strategy to boost revenue and diversify geographically.
Internationally, the group maintains a strong presence in the UK, where it holds assets like the producing Anasuria field and several greenfield developments, including Fyne, Avalon, Pilot, Glenn, and Hutton.
“Ping Petroleum’s expansion in Malaysia will create additional opportunities for OGPC Group, a service provider and distributor of technical equipment within the sector. The recent upgrade of our Kemaman Supply Base Workshop enhances our service offerings and strengthens our position as an integrated provider, enabling us to secure more revenue from trading, general maintenance, and MRO (maintenance, repair and overhaul) projects. Further enhancements to the facility are planned this year in preparation to support Ping’s operations in Malaysia,” said DNeX.
“Moving forward, our outlook remains positive as the group is seeing stronger demand, reflected in rising average selling prices per wafer and per mask layer and higher manufacturing loading. In line with the National Semiconductor Strategy, aimed at positioning Malaysia as a global semiconductor hub, the group is exploring opportunities in grants and subsidies to support the establishment of new wafer fabrication and R&D facilities,” it added.
Shares of DNeX closed down one sen or 2.67% at 36.5 sen, giving it a market capitalisation of RM1.25 billion.