Dagang Nexchange (DNeX) (former Time Engineering)

Re: Dagang Nexchange (DNeX) (former Time Engineering)

Postby winston » Thu May 25, 2017 10:27 am

DNeX 1Q profit jumps 180% on consolidating OGPC results

by Syahirah Syed Jaafar

KUALA LUMPUR: Dagang NeXchange Bhd’s (DNeX) net profit jumped 180% year-on-year (y-o-y) to RM15.08 million in its first quarter ended March 31, 2017 (1QFY17) from RM5.37 million, as it benefited from a diversification into the energy busienss.

Revenue grew 63% y-o-y
to RM43.83 million from RM26.89 million, its bourse filing showed.

Its information technology and e-services segment reported a profit before tax (PBT) of RM14.1 million, driven mostly by trade facilitation and new recurring income from the operations of the Vehicle Entry Permit (VEP) and Road Charge (RC) system, and contribution from the new eWork Permit system.

Its energy segment contributed PBT of RM3.8 million, with the consolidation of OGPC Group’s earnings, and the share of result of associate Ping Petroleum Ltd.

It expects to perform well income-wise going forward, in tandem with improving crude oil price outlook.

“The new recurring income from the VEP and RC system project, eWork Permits, and the opportunity under the Petronas Carigali umbrella contract, to the directional drilling unit, has opened up a new revenue stream to the group,” it added.

Source: The Edge

http://www.theedgemarkets.com/article/d ... pc-results
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Re: Dagang Nexchange (DNeX) (former Time Engineering)

Postby winston » Fri Jul 07, 2017 10:13 am

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DNeX bags project to supply container systems worth up to RM75m

by Sulhi Azman

KUALA LUMPUR (July 6): Dagang NeXchange Bhd (DNeX) has secured a project worth between RM50 and RM75 million to supply up to 100 portable container systems (PCS) for petroleum products.

The PCS is a self-contained modular fuel storage and dispensing unit, which is targeted to be used for the supply of petrol at fish landing jetties in Malaysia, said DNeX in a Bursa Malaysia filing.

The contract was awarded by Petro Teguh Sdn Bhd to its wholly-owned unit OGPC Sdn Bhd.

According to DNeX, a PCS station with single storage is priced at RM500,000 per site/unit (psu) while the contract price for a PCS station with double storage is priced at RM750,000 psu.

DNeX’s group managing director Zainal Abidin Jalil said the project augurs well for the company, which is expanding its energy division, and will further strengthen the business segment and provide future growth.

“This [contract] is in line with our plan to pursue opportunistic contracting work in downstream sector leveraging on our expertise in delivering innovative engineered systems in short-cycle projects,” Zainal Abidin said in a separate media statement.

According DNeX, the project to supply up to 100 PCS nationwide is valid for two years starting from today. The project also covers maintenance and supply of PCS parts for the next 10 years.

This, said Zainal Abidin, will raise DNeX's earnings, improve resiliency across markets and position the company for sustainable value creation for its stakeholders.

“After a successful strategic transformation into a [company with] two core businesses, namely information technology and e-services as well as energy, DNeX has been making significant progress in both of its business divisions with this project adding on to its portfolio,” he added.

Based in Kota Damansara, Petro Teguh’s business is in the downstream oil and gas sector. Its core business is the construction of mini pump stations for Petronas Dagangan Bhd. A privately-held company, Petro Teguh is owned by Datuk Azmin Mustam Abdul Karim

Listed on Bursa Malaysia since 1983, shares in DNeX — formerly known as Time Engineering Bhd — dropped 1.5 sen or 2.5% to close at 58.5 sen today, for a market capitalisation of RM1.02 billion.

Source: The Edge

http://www.theedgemarkets.com/article/d ... orth-rm75m
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Re: Dagang Nexchange (DNeX) (former Time Engineering)

Postby winston » Tue Aug 08, 2017 10:17 am

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25 July 2017

Dagang NeXchange in merger talks to boost profit growth target

“We are a growth company and part of the growth will be via M&A,” said Zainal, 58, in an interview at the company’s headquarters in Kuala Lumpur. “The biggest potential in terms of growth is going to be the energy side.” He declined to give further details

KUALA LUMPUR: Dagang NeXchange Bhd, Malaysia’s best performing midcap stock, is in merger talks for its technology and energy businesses, betting acquisitions will boost its profit growth target to double digits this year.

For its IT unit, Dagang NeXchange is in advanced talks to acquire a company, while negotiations about the energy unit are still preliminary, said Zainal Abidin Jalil, group managing director.

More than 80% of the company’s revenue was from the IT side last year and the rest was from energy.

“We are a growth company and part of the growth will be via M&A,” said Zainal, 58, in an interview at the company’s headquarters in Kuala Lumpur. “The biggest potential in terms of growth is going to be the energy side.” He declined to give further details.

Dagang NeXchange has risen 195% in the past 12 months, the best performer on the FTSE Bursa Malaysia EMAS Index among stocks worth more than RM1bil in market value.

The gain has been supported by earnings from the company’s foreign vehicle entry payment project and a logistics system for monitoring trade in and out of the country.

“So far the management has been able to deliver despite the weak environment,” said Mohd Shanaz Noor Azam, an analyst at CIMB Investment Bank Bhd, who rates the stock “add” which is equivalent to a buy recommendation.

The company’s first-quarter net income announced in May rose 180% to RM15.1mil from a year earlier. It also plans to pay a regular annual dividend, Zainal said.

Dagang NeXchange has an indirect stake in the Anasuria oilfield in the North Sea basin, which has contributed to earnings since at least 2016.

Dagang NeXchange wants to expand its electronic vehicle payment system for Malaysia-bound vehicles from Singapore to other countries like Thailand, Indonesia and Brunei. The company is looking at 15 more potential crossings.

It’s also looking at adding services like marine cargo insurance to its logistics services because the company’s concession to work with the government expires in the third quarter of 2018.

With the end of the concession in mind, Dagang NeXchange is looking into other energy investments, such as expanding drilling and oilfield services and large scale solar projects, Zainal said.

Source: Bloomberg

http://www.thestar.com.my/business/busi ... xcMeSck.99
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Re: Dagang Nexchange (DNeX) (former Time Engineering)

Postby winston » Mon Aug 21, 2017 8:47 am

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Trading Buy: DNEX-4456
(Last price: RM0.470, Potential upside +23.4%)

Company Profile

DNEX was primarily an ICT provider, but the group diversified into the energy sector in 2016 as its 2nd core business. Going forward, DNEX is expected to derive ~60% of its earnings from IT & e-services and the remaining from energy-related businesses.

Trading Catalyst

Ex-cash of 3.6 sen, DNEX is currently trading at undemanding consensus 9.6x FY18 P/E (vs 10-year historical average 20x), supported by 18.7% earnings CAGR from FY16-19.

Potential downtrend reversal amid Bullish engulfing candle (daily chart) and Harami formation (weekly chart).

Strong earnings visibility with sound balance sheet.

Technical View
Resistance: RM0.500 / RM0.550 / RM0.580
Support: RM0.460 / RM0.445
Cut loss: RM0.435

Key Financial Stats
Strong FY16-19 earnings CAGR of 19%.
Undemanding FY18 P/E of 9.6x (ex-cash)

Source: Bloomberg, HLIB
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Re: Dagang Nexchange (DNeX) (former Time Engineering)

Postby winston » Wed Aug 23, 2017 10:03 am

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Better times ahead

1H17 net profit was in line at 41% of our/consensus FY17F forecasts as we expect a stronger 2H17 driven by new downstream O&G contracts and higher VEP revenue.

Core net profit in 1H17 surged 156% yoy due to higher contributions from all segments, and the consolidation of OGPC’s earnings.

We expect stronger earnings in 2H17 driven by new PCS contracts for mini pump station installations and the balance of the Johor-Singapore VEP contract payment.

The stock is down by 23% from its YTD high in May 17; we see the recent pullback as a good buying opportunity given that the stock trades at an attractive 13x FY18 P/E.

Maintain Add with an unchanged SOP-based TP of RM0.75.

Source: CIMB

https://brokingrfs.cimb.com/_q_0j4Cdf7u ... _V_Wg2.pdf
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Re: Dagang Nexchange (DNeX) (former Time Engineering)

Postby winston » Wed Aug 23, 2017 4:06 pm

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Dagang NeXchange dips 3.81% in active trade after 2Q earnings slump

by Surin Murugiah

KUALA LUMPUR (Aug 23): Shares of Main Market-listed Dagang Nexchange Bhd (DNeX) fell 3.81% in active trade this morning, after its net profit came in 87% lower at RM11.93 million for the second financial quarter ended June 30, 2017 (2QFY17) compared with RM89.5 million a year earlier, largely because last year's earnings had booked in a pre-acquisition gain of excess fair value of RM85.3 million for its Ping Petroleum Ltd buy.

At 9.50am. DNeX fell 2 sen to 50.5 sen with 28.62 million shares done.

The group's quarterly revenue grew 4% year-on-year to RM49.11 million from RM47.42 million, on the back of the consolidation of OGPC Sdn Bhd's results, recurring income from the operation and maintenance of the VEP & RC system, and oilfield drilling services to Petronas.

For the first half of FY17 DNeX's net profit fell 72% to RM27 million from RM94.87 million. Net profit was affected by the volatility of crude oil price and margin compression in the oil and gas industry even though revenue clocked in 25% higher at RM92.93 million against RM74.31 million a year ago.

Meanwhile, CIMB IB Research maintained its “Add”rating on Dagang NeXchange Bhd (DNex) at 50 sen with an unchanged target price of 75 sen and said the company’s 1H17 net profit was in line at 41% of house/consensus FY17F forecasts as the research house expects a stronger 2H17 driven by new downstream O&G contracts and higher vehicle enrry permit (VEP) revenue.

In a note Aug 22, the research house said DNex’s core net profit in 1H17 surged 156% y-o-y due to higher contributions from all segments, and the consolidation of OGPC’s earnings.

“We expect stronger earnings in 2H17 driven by new PCS contracts for mini pump station installations and the balance of the Johor-Singapore VEP contract payment.

“The stock is down by 23% from its YTD high in May 17; we see the recent pullback as a good buying opportunity given that the stock trades at an attractive 13x FY18 P/E.

“Maintain Add with an unchanged SOP-based target price of 75 sen,” it said.

Source: The Edge

http://www.theedgemarkets.com/article/d ... ings-slump
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Re: Dagang Nexchange (DNeX) (former Time Engineering)

Postby winston » Thu Sep 28, 2017 8:39 am

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CIMB Research cautious on Dagang Nexchange near term outlook

KUALA LUMPUR: CIMB Equities Research is cautious on Dagang Nexchange’s (DNex) near-term outlook due to soft market environment and margin compression in the oil and gas (O&G) segment.

The research house had on Thursday cut its FY17-19F EPS by 6%-10% due to weaker earnings from OGPC and DNeX Oilfield.

However, it still forecasts the energy division to record 12% earnings growth in FY17F.

“Overall, we expect DNeX to record a robust FY16-19F net profit compounded annual growth rate of 17%. Maintain Add with a lower sum-of-parts target price of 74 sen as we roll over our valuation to end-2018,” it said.

CIMB Research viewed the potential extension of the National Single Window (NSW) trade facilitation exclusivity and monetisation of the group’s radio frequency identification (RFID) system as key re-rating catalysts for the stock.

The research house said it met with DNeX's management on Wednesday morning to discuss the group’s 1H17 results and outlook for 2H17.

“We left the meeting feeling cautious on DNeX’s near-term outlook due to soft market environment and margin compression in the oil & gas segment.

“However, it maintained its 30% revenue and 20% net profit growth guidance in FY17F on the back of new recurring income in IT division and full-year profit contribution from Ping,” it said.

DNeX highlighted that pretax profit from IT division surged 35% on-year to RM22.3mil in 1H17, driven by growth in its trade facilitation business and new recurring income from operation and maintenance of the vehicle entry permit (VEP) & road charge (RC) system.

Meanwhile, the energy division’s pretax losses (excluding Ping) narrowed to RM2.9mil in 1H17 vs. RM4.1mil in 1H16 due to higher utilisation at DNeX Oilfield.

Ping recorded RM8.5mil associate profit contribution in 1H17 mainly due to higher average crude oil prices.

There was no on-year comparison in 1H16, as the 30% stake acquisition in Ping was only completed at end-2Q16.

“Management expects lower production volume from Ping. However, the group still expects a stronger 2H17 contribution (vs. 1H17) from Ping due to higher average crude oil selling prices of US$56 barrel year-to-date (vs. US$45 barrel in FY16),” it said.

CIMB cut its FY17-19F EPS by 6%-10% to account for weaker earnings from OGPC and DNeX Oilfield, but still expect stronger earnings delivery in 2H17 driven by:
1) 20% recognition of the portable container system contract of RM75m,
2) the remaining 20% VEP & RC system portion for the Johor-Singapore crossing, and 3) stronger contributions from Ping.

“Overall, we project DNeX to record a robust FY16-19F net profit CAGR of 17%, driven by resilient earnings growth in both its IT services and energy segments.

“Based on our channel checks, the alternative system which is supposed to replace DNeX’s National Single Window (NSW) platform in Sept 18 could be delayed due to integration issues.

“Hence, we see potential for the NSW platform exclusivity contract to be renewed or extended.

“Apart from that, the group is also exploring possible monetisation of its RFID tags system that is suited for applications in transport and logistics areas, such as multi-flow lanes,” it said.


Source: The Star

http://www.thestar.com.my/business/busi ... vJCyO36.99
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Re: Dagang Nexchange (DNeX) (former Time Engineering)

Postby winston » Tue Nov 07, 2017 8:34 am

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DNeX group bags encryption job for RFID tags for foreign-registered vehicles

KUALA LUMPUR: Dagang NeXchange Bhd’s (DNeX) 51%-owned subsidiary DNeX RFID Sdn Bhd has been awarded a total subcontract to supply radio frequency identification (RFID) vehicle entry permit (VEP) tag for foreign-registered vehicles.

DNeX told Bursa Malaysia that its RFID solutions subsidiary would charge RM15 for each RFID VEP tag issued. However, it did not give any estimate on the subcontract’s value.


Source: The Star

Read more at http://www.thestar.com.my/business/busi ... fdOAvlH.99
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Re: Dagang Nexchange (DNeX) (former Time Engineering)

Postby winston » Wed Nov 22, 2017 12:56 pm

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3Q17 boost from grant income

9M17 core net profit was in line at 70%/69% of our/consensus’ FY17F forecasts.

Core net profit in 9M17 surged 105% yoy due to higher contributions from all segments, and the consolidation of OGPC’s earnings.

We expect a stronger 4Q17 driven by new downstream O&G contracts and higher VEP revenue from the balance of the Johor-Singapore VEP contract payment.

The stock is down by 30% from its YTD high in May 17; we see the recent pullback as a good buying opportunity given that the stock trades at an attractive 12x FY18 P/E.

Maintain Add with an unchanged SOP-based TP of RM0.74

Source: CIMB

https://brokingrfs.cimb.com/OgeYwEe36N- ... y7aDQ2.pdf
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Re: Dagang Nexchange (DNeX) (former Time Engineering)

Postby winston » Fri Dec 22, 2017 8:40 am

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Dagang NeXchange bullish on 2018 outlook

(DNeX) remains bullish on stronger FY18 earnings growth, driven by higher growth from IT services, says CIMB Equities Research.

“However, it indicated that outlook for its energy unit remains challenging due to intense competition,” it said.

To recap, the NSW concession was due to expire in Sep 2018. This concession remains a major earnings driver for the group; it accounted about 45% of DNeX's net profit in FY16.

“We understand that the alternative platform for NSW is still facing integration issue, hence DNeX could still receive further extension beyond 2019F.

“The group highlighted that recognition for the remaining 20% of its first VEP & RC project at the Singapore-Malaysia border will be delayed from 4Q17 to 1H18 due to timing issues.

“However, DNeX will recognise the RM21mil operation and maintenance contract for the VEP & RC in FY17,” it said.

CIMB Research said the company also expects to start delivering the radio frequency identification (RFID) VEP tag for foreign vehicles in 1Q18.

DNeX expects to deliver 500,000 units in 2018. This will bring in additional RM7.5mil or 3% to group revenue in FY18F.

“We cut our FY17F EPS by 2.6% to account for the delay in the remaining VEP & RC contract recognition, but raise our FY18-19F EPS by 2.9-4.4% to reflect the extension of its NSW concession.

“Overall, we project DNeX to record a robust FY16-19F net profit CAGR (compounded annual growth rate) of 18%,” it said.

CIMB Research pointed out DNeX expects to see maiden revenue contribution from its 1Trade platform in 2H18.

“Maintain Add and target price of 74 sen. The extension of the NSW concession and higher crude oil prices are potential re-rating catalysts for the stock.

“Key downside risks to our Add call are lower crude oil prices, and decline in NSW transaction volume post-expiry of its concession in September 2019F,” it added.

Source: The Star

https://www.thestar.com.my/business/bus ... C7mO0TB.99
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