KUALA LUMPUR (June 6): Dagang NeXchange Bhd (DNeX) is upbeat about its prospects under the new government that has pledged to be business-friendly, and says the group is set to continue to expand its business via planned initiatives as well as the exploration of new opportunities.

The group is targeting a 20% growth in profit after tax for its financial year ending Dec 31, 2018 (FY18), on a 30% growth in revenue, which its group managing director Zainal Abidin Jalil told reporters today would be driven by improved performance from its two core business divisions.

DNeX's FY17 core profit after tax grew 76% year-on-year to RM55.2 million from RM31.3 million in FY16 — after excluding a one-off recognition of negative goodwill of RM88.9 million arising from the acquisition of Ping Petroleum Ltd in FY16 — as revenue rose 14% y-o-y to RM204 million from RM178.4 million.

"We are well positioned for profitable growth and with our two core business divisions namely IT and e-Services, as well as energy, we have a sustainable business model.

"DNeX is committed to create and capture new opportunities by leveraging on the company's core competencies as well as pursue strategic investments," Zainal said after the group's annual general meeting.

The group is also eyeing a tender that it expects the government to call for — implementation of the Road Charge Vehicle Entry Permit (RCVEP) project for the Malaysia-Thai borders. "The new government will likely call for a tender for that, and we are getting ready," Zainal said.

The group was appointed the exclusive project consultant for the RCVEP project last year.

On the expected value of the tender, Zainal declined to speculate, saying only that it might be different than the RCVEP system that involves foreign-registered vehicles entering Malaysia via Johor, as the volume of cars crossing the Malaysia-Thai border is lower.

The company secured the RM104.3 million contract last year to manage operate and manage the southern RCVEP system for five years.