Dagang Nexchange (DNeX) (former Time Engineering)

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DNeX’s 2Q net profit down 27% y-o-y on higher tax expenses

Izzul Ikram

Net profit for the second quarter ended Dec 31, 2022 (2QFY2023) decreased by 27.26% to RM31.88 million from RM43.83 million a year earlier, partly due to higher tax expenses.

Quarterly revenue slipped 6.45% to RM330.53 million as compared to RM353.31 million a year ago, due to a 25.78% weaker contribution from its technology (semiconductor fabrication) segment, on the back of the lower wafer shipments.

Source: theedgemarkets.com

https://www.theedgemarkets.com/node/655933

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Dnex expects wafer delivery volumes to normalise

The drop in wafer shipments impacted the group's revenue for the quarter ended Dec 31, 2022, which fell 6.4% year-on-year (y-o-y) to RM330.53mil.

"The future demand for semiconductor chips is projected to stay strong, driven by the growing needs of the automotive, data storage, and wireless connectivity industries".

Able to gradually increase its volume of emerging technologies such as microelectromechanical systems (MEMS) and Silicon Photonics, leading to higher average selling prices (ASP) recorded.

"The addition of 10% capacity, which is slated to become operational in the latter half of 2023, will allow SilTerra to improve product mix further, leading to higher ASPs".

Source: The Star

https://www.thestar.com.my/business/bus ... -normalise

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Analysts lower target prices for DNeX after 2Q earnings miss

by Izzul Ikram

Attributed the variance to the larger-than-expected dip in SilTerra Malaysia Sdn Bhd’s profits, and higher tax rates on Ping Petroleum Ltd’s books arising from higher profitability, due to riser reinstatement in tandem with the energy profit levy (EPL) regime in the UK.

Source: theedgemarkets.com

https://www.theedgemarkets.com/node/656092

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DNeX partners Mimos to explore government digitalisation projects

by Izzul Ikram

To undertake government activities pertaining to the development of enhanced digital technology capabilities, software development, networking, system integration, consultation services, cloud computing and the fourth industrial revolution.

DNeX noted that it has a proven track record in delivering e-services to the government including for Malaysia’s National Single Window (NSW), integrated government financial and management system (iGFMAS), and Malaysia Hasil Integrated Taxation Systems (HITS).

Source: theedgemarkets.com

https://www.theedgemarkets.com/node/656098

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Hit by higher tax provision in 2QFY23

1HFY6/23 core NP was below expectations, at 42%/35% of our/consensus’ full-year NP forecast, due to higher-than-expected tax expense at Ping.

We still see exciting growth opportunities for DNeX beyond FY6/23F in view of industry demand recovery and growing exposure in emerging technology.

We cut FY23-25F EPS. Reiterate Add, with a lower RM0.90 SOP-based TP.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 297B6550B3

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2Q Results

Revenue: -7%
EPS: -28%
Net Asset: 0.61

https://www.bursamalaysia.com/market_in ... id=3328821

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DNeX, CGP reach out-of-court settlement over SilTerra dispute

by Justin Lim

A lawsuit against two subsidiaries of Dagang NeXchange Bhd (DNeX) in relation to a shareholders agreement signed in July 2021 was struck out on Wednesday (Feb 22) after the parties reached an out-of-court settlement.

“The consent order shall be effective and enforceable until any final award obtained by TTCL in the arbitration is fully satisfied, or the date of the final award of the arbitration if all TTCL’s claims are unsuccessful”.

Source: theedgemarkets.com

https://www.theedgemarkets.com/node/656389

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Dagang NeXchange Bhd (DNeX) posted a net loss of RM239.77 million in its third quarter ended March 31, 2023 (3QFY2023), from a net profit of RM51.6 million a year ago, hit by a RM252.4 million energy profit levy in the UK for its oil and gas operations under Ping Petroleum Ltd.

The weaker performance was compounded by a decline of 27.68% in revenue to RM276.71 million, from RM382.64 million.

As a result of the weaker quarter, DNeX saw a net loss of RM166.16 million compared with a net profit of RM388.99 million in 9MFY2022 in the nine-month period ended March 31, 2023 (9MFY2023).

Source: The Edge

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DNeX shines despite RM239.77mil net loss

Its share price jumped as high as 10.3% to 43 sen in the early morning trade.

DNeX’s huge quarterly net loss was due to a RM252.4 million energy profit levy in the UK for its oil and gas operations under Ping Petroleum Ltd.

The levy was set at 25% for profits generated from May 26, 2022 to Dec 31, 2022 and 35% for profits arising from Jan 1, 2023 to March 31, 2028, it said.

“The enactment of the energy profit levy by the UK government led to a deferred tax liability recognised as at March 31, 2023 of RM252.40 million (which) is non-cash in nature and will be fully reversed to the profit or loss by March 31, 2028,” the group said.

Ping Petroleum – in which DNeX owns a 90% stake – will focus on developing the Meranti Cluster, an offshore brownfield asset near Kuala Terengganu.

The group also feels optimistic that its information technology segment will continue to benefit from its National Single Window (NSW) for Trade Facilitation service.

NSW is DNeX’s one-stop trade facilitation system, which helps link traders with government agencies as well as trade and logistics parties through a single platform.

Source: FMT Business

https://www.freemalaysiatoday.com/categ ... -366156373

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HLIB believes the worst may already be over for DNeX.

It is also wagering on a positive outcome for the ongoing arbitration with CGP and we look forward for a timely update on the potential JV with Foxconn on a 12-inch wafer fab in Malaysia.

Source: The Star