DNeX's 2Q net profit inch up with new acquisition

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KUALA LUMPUR (Aug 6): Dagang Nexchange Bhd’s (DNeX’s) net profit for its second quarter ended June 30, 2018 (2QFY18) inched up 2% to RM12.16 million from RM11.93 million in the previous year’s corresponding quarter, as it recorded higher revenue following its acquisition of consultancy outfit, Genaxis Group, in additon to recurring incomes.

The technology company’s quarterly revenue grew 4% to RM51.18 million against RM49.11 million a year ago. The topline growth was supported by both its acquisition in Genaxis Group and growth in its business-to-business and business-to-government businesses, the group’s stock exchange filing showed today.

While trade facilitation remains strong, the group said its 2QFY18 performance was affected by its new start-up business. Meanwhile, its energy division “continues to experience significant competitive pressure in an environment of declining oil and gas activities,” although improving crude oil prices have improved the results of an associate.

For the first six months of its 2018 financial year (1HFY18), DNeX posted a 5% increase in net profit to RM28.4 million versus RM27.01 million in 1HFY17, supported by a strong year-on-year revenue growth of 32% to RM122.29 million from RM92.93 million.

“The bulk of the group’s revenue came from IT & e-Services division, representing 81% of the total revenue, while the remaining 19% was contributed by energy division.

“The overall higher revenue was mainly attributed to continued growth of the Group’s business-to-business and business-to-Government services, and the consolidation of post acquisition results from Genaxis Group,” DNeX said in a statement today.

“The strong financial results are testament to our commitment in building, managing and improving our service platform eco system in trade facilitation, transport and halal ecosystem,” said executive deputy chairman of DNeX Datuk Samsul Husin.  

Going forward, DNeX said it would continue to build its business by exploring opportunities that leverage on its existing IT and e-Services as well as energy businesses. It also will focus on implementing planned initiatives.

The group expects to deliver positive results for the year 2018.

Shares in DNeX closed unchanged at 40 sen today, leaving the group with a market capitalisation of RM711.76 million.