Thursday 28 Mar 2024
By
main news image

KUALA LUMPUR (Nov 25): Dagang NeXchange Bhd (DNeX) posted a net profit of RM41.72 million for its first quarter ended Sept 30, 2022 (1QFY2023), as compared to RM293.56 million in 1QFY2022, when it recorded a RM264.51 million gain from the bargain purchase of a 60% stake in SilTerra Malaysia Sdn Bhd, a semiconductor wafer foundry. 

Excluding the one-off-gain from the bargain purchase, DNex's net profit grew 44% from the normalised 1QFY2022 net profit of RM29.05 million, as revenue grew 55% to RM419.58 million from RM270.87 million a year ago, driven by higher contribution from both its technology and energy segments, its bourse filing showed.

In particular, revenue from its technology business, which saw the consolidation of results from SilTerra for the full three months of July-September, as opposed to just two months in 1FY2022, jumped 84.6% to RM274.7 million, making the segment the anchor revenue contributor to the group.

Topline at its energy business, meanwhile, grew 30.3% to RM101.62 million, contributing 24% of total revenue. Its information technology (IT) division's revenue dipped 1.8% to RM43.3 million, making for 10% of total revenue.

“We are pleased to achieve solid performance despite the challenging operating environment, reflective of the strength of the group. In view of the global economic uncertainties ahead, the group will focus on optimising costs while maximising business value to ensure long-term sustainability,” said DNeX managing director Tan Sri Syed Zainal Abidin Syed Mohamed Tahir in a statement.

“Furthermore, the strengthening of the US dollar is favourable to the group with more than 80% of the group’s revenue transacted in US dollar. Particularly at SilTerra, we will continue to focus on investing in new emerging technologies that command higher average selling prices for long-term sustainability,” he said.

As for the group's energy business, Zainal said it is expected to benefit from stabilising Brent crude oil prices over the near term on the back of Russian oil sanctions and production cuts by OPEC+. 

"We are keen to unlock the remaining economic reserves through infill drilling and facility debottlenecking. We are confident that our energy business, anchored by Ping Petroleum Ltd, will continue to grow as a Malaysian-led company and expand and unlock the potential of other assets within the UK and Southeast Asia region,” he added.

As at Sept 30, DNex was in a net cash position with total cash of RM1.05 billion, with borrowings of RM322.6 million.

DNeX shares dipped 5 sen or 8.06% to close at 57 sen on Friday, giving the group a market capitalisation of RM1.78 billion.

Edited ByTan Choe Choe & Surin Murugiah
      Print
      Text Size
      Share