Dagang Nexchange (DNeX) (former Time Engineering)

[winston]

not vested

Censof sells 43 million shares in DNeX due to margin call

Censof, in a filing with Bursa Malaysia today, said the forced selling action on Tuesday by MIDF had raised RM3.92mil for the company.

The original cost of the investment was RM8.76mil.

Proceeds from the disposal, Censof said, will be used to reduce its share margin loan.

The disposal reduced Censof's stake in DNeX by 2.45% to 13.2%, or 232 million shares.

Source: The Star

https://www.thestar.com.my/business/bus ... argin-call

[winston]

DNeX sees rising interest in digitalisation amid movement curbs

by Muhammed Ahmad Hamdan

DNeX is involved in two business segments, energy and IT, with the latter contributing about 80% of the group’s revenue.

The group’s wholly-owned unit, Dagang Net Technologies Sdn Bhd, is the operator of the National Single Window (NSW), which facilitates electronic customs-related transactions and duty payments, and electronic document transfer between members of its trading community.

The platform processes over 100 million electronic transactions and RM1.8 billion worth of customs duty payment annually. It serves a diverse range of customers from logistics and manufacturing to retail and government.

“SealNet, our web-based one-stop system is designed to ease cargo and trade management processes, connecting exporters and importers with all relevant parties, such as freight forwarders and Customs, and enabling the exchange of trade data digitally.

DNeX posted a lower net profit of RM30.01 million for the financial year ended Dec 31, 2019 (FY19), down 15.11% from RM35.35 million for FY18.

Revenue was marginally down to RM290.49 million from RM293.24 million.

Samsul said the group’s FY19 performance was satisfactory despite challenges in the overall market.

For FY20, he said the group does not expect the movement control order, which has been extended by another two weeks until April 28, to have a significant impact on DNeX’s financials given that a large portion of its revenue comes from the IT division.

Samsul said the NSW for trade facilitation, for example, continues to operate during the partial lockdown period as it is part of essential services. The segment also corresponds to the level of trade activities in the country, including import and export.

Other ongoing projects under DNeX’s IT division include maintenance of the Integrated Government Financial and Management Accounting System (iGFMAS) and re-engineering the tax self-assessment system for the Inland Revenue Board.

On the group’s energy division, which is hit by the low crude oil prices, Samsul said the potential cut in capital expenditure spending by global oil companies can affect provision of services in the upstream segment.

“However, we are fortunate that our two major contracts, namely outdoor payment terminals and automatic tank gauging (ATG) with Petronas Dagangan Bhd, which falls under our downstream business, will continue to generate a steady revenue stream,” he noted.

DNeX bagged the outdoor payment terminal contract worth RM14 million on Feb 28. The one-year contract is for the supply of outdoor payment terminals for Petronas stations.

The ATG contract announced in July last year is for a period of two years, with an option to extend for another two years. The RM11.8 million contract is for the supply of ATG and its accessories for Petronas stations.

Besides Malaysia, DNeX also has operations abroad, including in the UK and Indonesia which have been badly hit by the global pandemic.

However, Samsul said DNeX mainly focuses on Malaysia and that it is in the midst of divesting its 30%-owned associate in the UK, Ping Petroleum Ltd. It was reported that the firm hopes to secure at least RM250 million from the sale.

“Meanwhile, in Indonesia, we have completed the submarine cable installation and repair project and are exploring other job opportunities there and in the region,” the deputy chairman added.

The tech stock has lost more than half or 53.71% of its value year to date.

Source: The Edge

https://www.theedgemarkets.com/article/ ... ment-curbs

[winston]

not vested

DNeX plans to raise up to RM109m via private placement

by Justin Lim

KUALA LUMPUR (July 28): Dagang NeXchange Bhd (DNeX) has proposed a private placement to raise up to RM109.14 million to invest in new businesses, repay bank borrowings and use for working capital.

The actual number of shares to be issued will depend on the group's total number of issued shares on a date to be determined later, the group said in a filing today.

"Assuming all the convertible securities are fully converted into new DNeX shares prior to the implementation of the proposed private placement, the company's enlarged number of issued shares will be 2.48 billion DNeX shares.

“Accordingly, a total of up to 496.08 million new DNeX shares, representing approximately 20% of the enlarged number of issued shares of DNeX, may be issued pursuant to the proposed private placement," it added.

DNeX said the placement shares will be issued to third-party investors who will be identified later, while the issue price of the shares will also be determined later.

The issue price, it added, will not be priced at a more than 10% discount to the five-day volume-weighted average market price (VWAP) of DNeX shares immediately before the price-fixing date.

For illustration purposes, based on the issue price of 22 sen per share, the placement share could raise up to RM109.14 million, the group said.

DNeX said from the proceeds of the placement, RM84.04 million, has been earmarked for investment into new potential businesses, RM20 million to repay partial bank borrowings and RM5 million for working capital.

On the potential businesses, acting group managing director Mohd Azhar Mohd Yusof said: “We believe there are sound opportunities where we can tap to put us back on the growth path. Especially under current market conditions, valuations of certain IT and energy assets have become attractive for the group to consider investing in.”

“However, we will be very selective and prudent in making investment decisions, so as to ensure the preservation and growth of shareholder value,” he said in a separate statement.

“The corporate exercise will build up the group’s war chest and strengthen our capabilities to develop new sustainable revenue lines, as part of our plan to chart the next growth phase for the group,” he added.

As at March 31, 2020, DneX's total borrowings amounted to RM97.59 million. As such, the RM20 million repayment of borrowings should result in annual gross interest savings of RM1.02 million.

The group expects the private placement to be completed by the fourth quarter this year.

The share price of DNeX closed half a sen or 1.82% lower at 27 sen, valuing the group at RM474.68 million. Some 60.49 million shares were traded.

The stock has jumped by more than three times from its recent low of eight sen in March.

Source: The Edge

https://www.theedgemarkets.com/article/ ... -placement

[winston]

not vested

February 09, 2021

DNeX rises in active trade after winning bid to acquire semiconductor fabricating company

by Syafiqah Salim

DNeX also explained that the acceptance of the bid is still subject to strict confidentiality with Khazanah and no further details of the bid can be publicly disclosed until the signing of the definitive agreement.

Source: theedgemarkets.com

https://www.theedgemarkets.com/node/553923

[winston]

not vested

DNeX posts RM15.1 mil profit amid impairment reversal

by Ahmad Naqib Idris

Revenue for the quarter, however, declined 27% to RM63.33 million from RM87.34 million, no thanks to lower contributions from the trade facilitation & e-commerce business as well as lower progress billing in the system integration & consultancy business.

For the 12 months ended Dec 31, 2020, its net profit dropped 96% to RM1.1 million from RM30.04 million a year earlier, while revenue fell 18% to RM239.52 million from RM290.49 million.

Source: theedgemarkets.com

https://www.theedgemarkets.com/article/ ... t-reversal

[winston]

not vested

MyCC imposes RM10.3 million fine against Dagang Net

by Surin Murugiah

The Malaysia Competition Commission (MyCC) has fined Dagang NeXchange Bhd unit Dagang Net Technologies Sdn Bhd (Dagang Net) a total of RM10.3 million for the abuse of its dominant position by engaging in exclusive dealing.

Source: theedgemarkets.com

https://www.theedgemarkets.com/node/556448

[winston]

not vested

After winning bid for Khazanah's SilTerra stake, DNeX bags three-year national single window contract extension

by Syafiqah Salim

Source: theedgemarkets.com

https://www.theedgemarkets.com/article/ ... -extension

[winston]

not vested

Khazanah sells Silterra to DNex and China-based Equity Fund for RM273 mil cash

by Syafiqah Salim

To acquire Khazanah Nasional Bhd's loss-making semiconductor unit for RM273 million cash.

DNeX said it will take up a 60% stake in SilTerra Malaysia Sdn Bhd for RM163.8 million, while CGP Fund will acquire the remaining 40% for RM109.2 million.

DNeX said it will pay for its 60% stake buy through using the proceeds to be raised from a proposed private placement, internally-generated funds and borrowings.

DNex and CGP Fund have also committed to a capital injection of at least RM200 million by way of subscribing for new shares to be issued by SilTerra.

Based on DNeX’s 60% stake, the capital injection by DNeX will amount to about RM120 million.

According to DNeX, the acquisition is expected to be completed by the end of the second quarter of 2021, with the capital injection expected to be within 180 days thereafter.

“Upon completion of the proposed acquisition, contribution from SilTerra is expected to account for 25% or more of the group’s consolidated net profits and consolidated net assets, moving forward,” it said.

Source: theedgemarkets.com

https://www.theedgemarkets.com/article/ ... 3-mil-cash

[winston]

not vested

Perfect timing for DNeX

By EUGENE MAHALINGAM

DNeX said it had issued 16.6 million new shares at 50 sen each from a warrant exercise that will be listed today.

For the first half of 2020, Silterra’s losses came up to RM172mil on the back of a revenue of RM397mil while its reserves were at a negative amount of RM1.8bil.

Khazanah has pumped in more than RM2bil into Silterra over the years, which has posted accumulated losses of more than RM8bil.

Khazanah has been trying to sell off the loss-making chip maker since 2008.

Source: The Star

https://www.thestar.com.my/business/bus ... g-for-dnex

[winston]

not vested

DNeX seeks to raise RM641.96 mil via private placement

Source: Bernama

https://www.theedgemarkets.com/article/ ... -placement