Dagang Nexchange (DNeX) (former Time Engineering)

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Impairments of RM429.5 mil pull DNeX into record quarterly loss, largest annual hit in over two decades

By Izzul Ikram

The group's net loss widened to RM270.93 million for the quarter ended Dec 31, 2025 (4QFY2025), from RM78.94 million in 4QFY2024.

The hit was primarily due to asset impairments totaling RM429.5 million from its semiconductor (RM200.2 million) and energy (RM229.3 milion) segments.

These impairments are one-time accounting entries that lower the recorded value of assets bought previously and the "non-cash" adjustments do not reflect any deterioration in the operational performance of the assets.

Revenue dropped 29% to RM214.94 million from RM303.06 million amid weaker segment contributions across the board.

The dismal quarter caused DNeX's net loss for the full FY2025 to widen to about RM318 million — its largest annual loss since FY2004, when it reported a net loss of RM367.13 million.

Cumulative revenue fell 11.3% to RM1.04 billion from RM1.17 billion.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/794389

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Dagang NeXchange Berhad (DNeX) share price has been experiencing upward momentum in early 2026, driven by a combination of strategic corporate restructuring, recovery in its semiconductor segment, and positive sentiment in the oil and gas sector.

As of late February 2026, the company is actively pivoting toward AI-driven technologies and expanding its high-value semiconductor products, which has bolstered investor confidence.

Key reasons for the recent price increase include:

1. Turnaround in IT Segment and Strategic Growth: The Information Technology segment has shown a strong turnaround, with Profit Before Tax (PBT) rising, supported by key government contracts like the National Single Window and iGFMAS.

Furthermore, DNeX has partnered with Google Cloud to provide sovereign cloud infrastructure, positioning itself for AI-driven growth.

Semiconductor Segment Recovery: Despite a temporary power disruption earlier, the Semiconductor segment (SilTerra) has seen revenue growth, supported by a 33% increase in average selling prices (ASP) and a successful pivot toward higher-value Emerging Technology products.

Energy Sector Strength: Rising Brent crude oil prices (hovering around $112-$113 per barrel as of March 2026) have boosted sentiment, with the company’s Ping Petroleum targeting increased production from the North Sea.

Improved Financial Position: Following a strategic impairment that cleaned up the balance sheet, DNeX reported a solid net cash position of RM624.2 million as of 31 December 2025, providing financial flexibility for future growth.

Technical Rebound: Technical analysis has suggested a shift towards a bullish sentiment, with the stock price moving above key support levels and attempting a recovery from previous lows.

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1Q Results

Revenue: -10%; RM 268m
EPS: 0.37; + RM 13m from Loss of RM 79m
NAV: 0.38

https://disclosure.bursamalaysia.com/Fi ... TTACHMENTS