DNeX 2Q earnings up on higher revenue from IT biz

By TMR

Dagang NeXchange Bhd (DNeX) recorded a 1.9% year-on-year (YoY) increase in net profit to RM12.16 million for its second quarter ended June 30, 2018 (2Q18) on a higher revenue base.

In an exchange filing yesterday, the information technology (IT) service provider with investments in the energy sector noted its revenue grew 4.2% YoY to RM51.18 million, largely attributable to higher turnover from its recently acquired Genaxis Group Sdn Bhd.

Revenue was boosted by recurring income from its management of the vehicle entry permit and road charges systems for foreign cars entering into Johor and growth in the group’s in business-to-business and business-to-government operations.

The contributions from the IT business helped offset the challenging performance from its energy division which continues to be plagued by declining activities.

For the first half of the year, DNeX’s net profit is up 5.1% YoY at RM28.4 million, while revenue is 31.6% YoY higher at RM122.29 million.

Going forward, the company noted it will continue to build of its current assets while with its recent Genaxis Group acquisition expected to support its growth into new services and products in new markets. — TMR