KUALA LUMPUR (May 4): Dagang NeXchange Bhd's (DNeX) subsidiary has won a sub-contract to provide a touch-and-go electronic wallet service for local and foreign vehicles entering the country.

DNeX said 51%-owned DNeX RFID Sdn Bhd was awarded the job by the main contractor, TCSens Sdn Bhd.

DNeX did not specify the value of the sub-contract, but said the project could generate an annual revenue ranging from RM19 million to RM21 million, with an estimated project margin of 35% in the first three years.

DNeX said the expected revenue was based on projected volume of both local and foreign vehicles.

"Barring any unforeseen circumstances, the sub-contract is expected to contribute positively towards the future earnings and net assets per share of DNeX over the tenure of the contract," DNeX, a technology solutions provider, told Bursa Malaysia in a filing today.

According to DNeX, the sub-contract entails providing necessary support to supply relevant materials, while providing network connectivity revision to the vehicle entry permit system to Touch 'n Go Sdn Bhd's back-end systems.

Currently, DNeX operates and manages the vehicle entry permit and road charges system, which is based on radio frequency identification technology, involving foreign-registered vehicles entering Malaysia via two entry points in Johor: Kompleks Sultan Abu Bakar in Tanjung Kupang and Bangunan Sultan Iskandar in Johor Bahru.

DNeX shares closed 1.5 sen or 3.8% lower at 38 sen today, giving a market capitalisation of RM667.87 million.