CIMB Equities Research is retaining its add call for Dagang NeXchange (DNex) but with a lower target price (TP) of 53 sen.
KUALA LUMPUR: Dagang Nexchange Bhd
(DNeX) is targeting to grow its revenue by 30% and increase its net profit by 20% over the next two years.
This will be driven by the expansion of its business-to-business offerings. They include trade facilitation, financial and accounting services, RFID solutions, portable container systems, as well as scaling up of its upstream oil and gas business.
In financial year 2017, the IT & e-services segment constituted 69% or RM140.2mil of total group revenue and the energy segment accounted for the remaining 31% or RM63.7mil.
Speaking after the group’s AGM, DNeX group managing director Zainal Abidin Jalil said DNeX was well-positioned for profitable growth.
“With our two core business divisions, IT & e-services as well as energy, we have a sustainable business model.
“DNeX is committed to create and capturing new opportunities. It is set to continue expanding its business through executing planned initiatives and exploring opportunities that leverage on the company’s core competencies as well as pursue strategic investments,” he said.
Zainal added that as a technology inclined company, the group was well-positioned to participate in the open tender system, competing based on merit.
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