DNeX 3Q earnings boosted by energy, tech businesses

by SHAFIQQUL ALIFF / pic by TMR FILE

 DAGANGAN Nexchange Bhd (DNeX) made a net profit of RM51.6 million for its third quarter ended March 31, 2022 (3Q22), as its new technology and energy investments contributed to revenue which hit RM382.6 million.

DNeX higher 3Q revenue was boosted by its investment in SilTerra Malaysia Sdn Bhd which contributed 60.7% of revenue or RM232.1 million while Ping Petroleum Ltd accounted for 26.9% or RM102.9 million of revenue.

The group’s energy business benefitted from higher average selling prices of crude oil as Brent crude oil prices surpassed US$100 (RM438) per barrel.

DNeX’s IT segment contributed RM47.6 million to revenue in the period, its exchange filing today revealed.

DNeX Group MD Tan Sri Syed Zainal Abidin Syed Mohamed Tahir (picture) stated the result of the group’s resilience and relentless pursuit to focus on strategies that improve bottom-line performance, despite the geopolitical uncertainty and volatility affecting global markets.

“We are confident SilTerra will continue to benefit from the extended global semiconductor industry upcycle, supported by multiple long-term wafer supply agreements and shift in product mix to include new technologies that are geared towards data centres, 5G networks and life sciences applications.

“In addition, the planned expansion to ramp up SilTerra’s annual production capacity by 10% by early 2023 will translate to better economies of scale, with further improvement in manufacturing cost,” he said.

He added DNeX is exploring new opportunities to expand its semiconductor fabrication capabilities as part of its long-term plans to enhance business sustainability and address the strong global demand for semiconductors

DNeX recently inked a memorandum of understanding with Big Innovation Holdings Ltd, a wholly owned subsidiary of Hon Hai Precision Industry Co Ltd (Foxconn), to build and operate a new 12-inch wafer fabrication plant operating to produce 40,000 wafers per month.

It encompasses the manufacturing of 28-nanometer and 40-nanometer technologies and will complement the group’s existing investment in SilTerra, in areas such as best practices and technology excellence,” he added

For the nine months, DNeX recorded revenue of RM1.01 billion and net profit of RM389 million.

DNeX’s share price closed down three sen at RM1.01 today following the release of the quarterly result.