KUALA LUMPUR (May 15): Dagang NeXchange Bhd (DNeX) saw its net profit dropped 76% to RM0.47 million or 0.06 sen per share for its first quarter ended March 31, 2015 (1QFY15), from RM1.94 million or 0.25 sen per share in the previous year, after a one-off voluntary separation scheme (VSS) payment of RM5.55 million.

In its filing with the bourse today, DNeX (fundamental: 2.6; valuation: 0.2) said the VSS was to improve its operations.

“Moving forward, the rationalisation exercise is expected to contribute positively to long-term sustainable operational efficiency for the group, in years ahead,” it said.

Meanwhile, revenue climbed 18% to RM21.99 million in 1QFY15, from RM18.60 million in 1QFY14, contributed by growth in its business-to-government (B2G) business and progress billing for the provision of professional services for the implementation of the goods and services tax (GST) integrated logistic portal.

Going forward, the group expects to post positive results for its current financial year ending Dec 31, 2015 (FY15), as it leverages on its trade facilitation business.

It also highlighted the introduction of myCargo2U in 1QFY15, which provides an all-in-one solution for cargo and trade management.

“We will leverage on such services, meant to help companies and organisations improve their productivity and operational efficiencies, to further grow our business in trade facilitation.

“While this remain our core business, we are at the same time pursuing strategic diversification in oil and gas and power, which will serve as another revenue pillar for the group in the near future,” said DNeX' group managing director Zainal Abidin Jalil in a press statement.

The group said it is on track to register its first revenue for the energy business in April 2015, following the equipment rental agreement between its 80%-owned subsidiary, DNeX Oilfield Sdn Bhd, and Baker Hughes (Malaysia) Sdn Bhd.

DNex fell 1 sen or 3.39% to 28.5 sen, bringing its market capitalisation to RM228.7 million.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)