DNeX expects up to RM21mil revenue from sub-contract

  • Business
  • Saturday, 05 May 2018

KUALA LUMPUR: Dagang Nexchange Bhd (DNeX) expects a sub-contract for the vehicle entry permit system project secured by a 51% owned subsidiary to generate revenue ranging from RM19mil and RM21mil a year.

The project margin is estimated at 35% in the first three years.

The company, in a filing with Bursa Malaysia yesterday, said 51% owned DNeX FRID Sdn Bhd had on May 4 received the letter of award from TCsens Sdn Bhd, the main contractor for Touch N’ Go e-wallet for local and foreign vehicles project.

The sub-contract works include the supply of material, equipment, software, manpower and other related support for the project.

The company will also provide network connectivity revision to the existing vehicle entry permit system to TNG’s back end system.

The estimated revenue and margin forecast, DNeX said, was based on the projected traffic volume of both local and foreign vehicles using the system.

“The sub-contract is expected to contribute positively towards future earnings and net assets per share of the company over the tenure of the sub-contract,” it said.

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