PETALING JAYA: Dagang Nexchange Bhd’s (DNeX) net profit for its second quarter ended June 30 grew 2% to RM12.16mil from RM11.93mil in the previous corresponding period, boosted by recurring income from operating and managing its vehicle entry permit (VEP) and road charge (RC) system.
Earnings were also bolstered by continued growth in the group’s business-to-business (B2B) and business-to-government (B2G) segments.
In a filing with Bursa Malaysia yesterday, DNeX said revenue in the second quarter increased to RM51.18mil from RM49.11mil a year earlier.
“The group recorded a higher revenue in the current quarter by 4.2% as compared to the preceding year’s corresponding quarter,” it said, adding that the increase in revenue was mainly due to post-acquisition results from Genaxis Group.
“The energy division continues to experience significant competitive pressure in an environment of declining oil and gas activities. The group’s trade facilitation remains strong, with an expected annual growth of 5%. However, the current quarter’s performance was affected by the new start-up businesses.
“The group’s share of results in an associate company has improved in tandem with the improving crude oil price in the current quarter.”
For the six-month period, meanwhile, DNeX’s net profit rose to RM28.4mil from RM27.01mil in the previous corresponding period, while revenue improved to RM122.29mil from RM92.93mil a year earlier.
“The group recorded RM122.29mil in revenue for the current year-to-date as compared to the preceding year’s RM92.93mil. The overall 32% higher revenue in the current year-to-date was mainly due to the consolidation of the post-acquisition results from Genaxis Group, in addition to continued growth in the group’s B2B and B2G businesses.
“The IT segment’s recorded revenue of RM98.93mil was also attributable to the recurring income from the VEP and RC operations and maintenance services, trade facilitation and B2B business.”
Barring any unforeseen circumstances, DNeX said it expects to deliver positive results for 2018.
“The group will continue to build its business by exploring opportunities that leverage on building blocks of its existing IT and e-services and energy businesses, while focusing on the implementation of planned new initiatives.
“The group’s newly acquired Genaxis Group has given a strong footing for the group to broaden its services and product range beyond its current market and geographical segment.”