Kuala Lumpur, 24 May 2018 – Dagang NeXchange Berhad ("DNeX") has announced a commendable set of results for the financial year ended 31 March 2018 ("1Q 2018").
In 1Q 2018, the Group recorded RM71.1 million in revenue, an increase of 62 per cent from RM43.8 million in the first quarter of 2017 ("1Q 2017"). The Group’s profit after tax ("PAT") grew by 91 per cent to RM28.7 million from RM15.0 million a year ago. The improved performance was mainly driven by stronger performance in the IT and e-Services segment and higher contribution from Ping Petroleum Limited ("Ping").
The Group recorded RM59.3 million in revenue from the IT & e-Services segment, mainly attributed to the consolidation of financial performance from newly acquired Genaxis Group Sdn Bhd ("Genaxis") and Innovation Associates Consulting Sdn Bhd ("IAC").
Its recurring operations and maintenance contract of the Vehicle Entry Permit and Road Charge ("VEP & RC") system at the Malaysia-Singapore border as well as continued growth of the Group’s Trade Facilitation business also contributed positively to its revenue.
Early this year, DNeX entered into the accounting and financial services sector with a RM10 million acquisition of a 51 percent equity interest in Genaxis, which owns 60 per cent of IAC.
"We are upbeat on the Group's prospects, anchored by our IT & e-Services segment, and which projects provide the Group with a sustainable and recurring income, thus enhancing our earnings visibility," said Datuk Samsul Husin, Executive Deputy Chairman of DNeX.
He said with the completion of DNeX’s latest acquisition of Genaxis and IAC, the Group is building its competency in consulting, software and solution provider for Government and private sectors, deemed to be able to provide a better sense of an organisation’s overall financial health and hence promotes transparency.
Stronger crude oil prices led DNeX’s 30 per cent-owned associate Ping, which is involved in upstream oil and gas ("O&G") production activities in the North Sea, United Kingdom to report a 35 per cent rise in share of profit to RM6.1 million from RM4.5 million in 1Q 2017.
The Group is poised to sustain strong earnings momentum driven by both IT & e-Services as well as Energy segments, and remains committed to create value for shareholders through translating its core competencies into business opportunities.