Kuala Lumpur, 21 August 2019 – Dagang NeXchange Berhad (“DNeX”) has announced its results for the second quarter ended 30 June 2019 (“2Q FY2019”).
In 2Q FY2019, DNeX registered a 41 per cent increase in revenue to RM72.2 million as compared to RM51.2 million in the second quarter ended 30 June 2018 (“2Q FY2018”). Profit after tax (“PAT”) in 2Q FY2019 rose to RM12.6 million or 9 per cent higher than RM11.6 million in 2Q FY2018.
During the quarter, DNeX’s revenue benefitted from the Makkah Route project where the company provided on-site facilitation and communications connectivity for pre-clearance of Malaysian and Indonesian pilgrims, maintenance contract of the Integrated Government Financial & Management System (“iGFMAS”) project, and trading and services from the Energy division.
The Group’s profitability during the quarter meanwhile gained from trade facilitation and eCommerce and billing of the Makkah Route project as well as improvements in system integration and consultancy business.
For the six months period ended 30 June 2019 (“1H FY2019”), DNeX’s revenue increased by 15 per cent to RM141.1 million as compared to RM122.3 million in 1H FY2018 as both IT and eServices and Energy divisions reported higher year-on-year revenue growth.
The IT and eServices division continued to be the primary revenue contributor to the Group, representing 82 per cent of total revenue. Benefitting from stronger crude oil prices, contribution from the Group’s share of result of associate, Ping Petroleum Limited (“Ping”), which is involved in upstream exploration and production increased to RM13.9 million in 1H 2019 from RM12.6 million previously.
“We are pleased to report that our efforts to strengthen our revenue lines across both our IT and eServices and Energy divisions are yielding results. Our financial performance clearly shows that we are on the right track for the future,” said Datuk Samsul Husin, Executive Deputy Chairman of DNeX.
“While the recently clinched contract extension from the Government of Malaysia for the National Single Window for Trade Facilitation for a further two years ending 31 August 2021 provides us with strong earnings visibility, we are not resting on our laurels and will continue innovating to develop new eServices that leverage on our competencies,” he said, adding that the company is focused on growing eServices via the Dagang Net Digital Platform initiative to provide end-to-end, innovative services to help customers be more efficient, embracing Big Data, Blockchain and Artificial Intelligence technology.
“In the Energy segment, we have been growing the orderbook of our trading and services business, and are actively tendering for more projects including the downstream sector,” he said.
The Group, he added, will continue to pursue Group-wide operational cost optimisation programme to drive improvements in operational efficiency and ensure earnings sustainability.
As at 30 June 2019, the Group’s net assets per share improved to 27 sen from 25 sen as at 31 December 2018.