DNeX posts RM15.1 mil profit amid impairment reversal
KUALA LUMPUR (Feb 25): Dagang NeXchange Bhd (DNeX) returned to the black with a net profit of RM15.1 million for the quarter ended Dec 31, 2020 versus a net loss of RM3.73 million recorded in the previous year’s corresponding quarter, helped by an impairment reversal.
The reversal of non-cash impairment loss on intangible assets totalled RM13.5 million, its stock exchange filing showed.
Revenue for the quarter, however, declined 27% to RM63.33 million from RM87.34 million, no thanks to lower contributions from the trade facilitation & e-commerce business as well as lower progress billing in the system integration & consultancy business.
The group also noted it has completed the one-off submarine cable laying and maintenance contract in Indonesia, which contributed to its performance in 2019. Besides that, its energy division was affected by lower oil prices, which had a negative impact on the oil and gas (O&G) industry.
For the 12 months ended Dec 31, 2020, its net profit dropped 96% to RM1.1 million from RM30.04 million a year earlier, while revenue fell 18% to RM239.52 million from RM290.49 million. No dividend was declared in its results announcement today.
Going forward, DNeX said it plans to continue to grow its operations by exploring opportunities that would add value to its IT and energy segments, focusing on the implementation of planned new initiatives targeted to develop sustainable revenue streams.
“The group plans to position itself well in view of the recent announcement by the government on MyDigital, Malaysia Digital Economy Blueprint, and will build its capabilities to support the MyDigital programme,” it said.
Barring unforeseen circumstances, it expects to deliver positive results in financial year 2021, supported by the rise in oil prices driven by market optimism that Covid-19 vaccines will revive the global economy.
DNeX shares rose 3.5 sen to 72 sen today, giving it a market capitalisation of RM1.54 billion.