KUALA LUMPUR: Dagang Nexchange Bhd (DNeX) is expanding on its business-to-business offerings by focusing on five growth areas.
These areas are trade facilitation, financial and accounting services, RFID solutions, portable container systems, as well as scaling up of its upstream oil and gas business.
Speaking after its AGM, group managing director Zainal Abidin Jalil (pic) said DNeX is competing and building scale in the trade facilitation services segment.
“We are working with the Pan Asian Alliance community and other international players to establish our presence in cross-border trade facilitation.
“We are expanding our target market in the Asian Pacific and we have to create value by integrating cross-border connectivity with all players in the Asia-Pacific,” he said.
DNeX is targeting to grow its revenue by 30% and increase its net profit by 20% over the next two years.
For the financial year ended Dec 31, 2017 (FY17), DNeX registered a revenue of RM204mil, of which the IT and e-services segment constituted 69% while the energy segment accounted for the remaining 31%.
Net profit in FY17 fell 53.5% to RM56.6mil, due to a one-off recognition of negative goodwill of RM88.9mil arising from the acquisition of Ping Petroleum Ltd in FY16.
Apart from that, DNeX shall scale up and build its strengths in the services and offerings in recently acquired consulting and accounting system services companies, Genaxis Sdn Bhd and Innovation Associates Consulting Sdn Bhd (IAC).
The acquisition comes with a yearly profit guarantee of RM5mil for a total of three years.
Genaxis and IAC are expected to achieve a combined revenue of RM50mil to RM60mil by year-end.
Meanwhile, DNeX also intends to tender for the vehicle entry permit (VEP) and road charge (RC) systems project at the Malaysia-Thailand border.
Zainal said the group is working on the proposal, but declined to elaborate further.
As for the energy segment, DNeX is setting up a joint-venture company to establish its market presence in the small-scale renewable energy sector.
The group shall also continue to seek additional opportunities in the North Sea, and achieve a balanced and diversified portfolio of assets.
DNeX intends to secure additional exploration blocks of oilfields this year.
On the new government and its pro-business stance, Zainal said with DNeX being a technology-inclined company, the group is well-positioned to participate in open tender systems and compete based on merit.