KUALA LUMPUR: Dagang Nexchange Bhd
(DNeX) is targeting its energy and IT divisions to provide equal contribution to the group's total revenue in the financial year ending Dec 31, 2017.
Group managing director Zainal Abidin Jalil said on Thursday for FY ended Dec 31, 2015, the IT division contributed around 97% and the remaining 3% came from the energy division.
"DNEX is hitting key milestones in its diversification into energy, while at the same time strengthening its leadership in providing e-commerce services for trade facilitation," he told reporters after the AGM on Thursday.
In January, DNeX received shareholders' nod to buy the entire equity interest in OGPC Group for RM170mil.
In April, shareholders approved its purchase of 30% in Ping Petroleum Ltd for US$10mil.
"Our acquisition in the energy sector came at an opportune time as we were able to benefit from lower entry costs.
"Once the acquisitions for OGPC Group and Ping Petroleum are completed, expected in the third quarter of this year, we expect the revenue composition between the IT and Energy divisions to be more balanced," he added.
Zainal said DNeX was growing its IT business by providing end-to-end, comprehensive e-commerce services for trade facilitation, particularly expanding business-to-government services to business-to-business services.
The group was also stepping up its business-to-consumer segment through its global halal exchange eMarketplace, Zainal said.
"We are also in a strong position to expand our reach and capitalise on growing demand for adoption and implementation of IT to boost efficiency of process of companies and organisations through our Solution Integration Services," he added.
Based on the ongoing growth plan, Zainal expected DNex to at least double its revenue in 2017 and profit to more than double its profit in the same period.
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