Dagang NeXchange Berhad has released its first quarter financial results recording a strong performance mainly contributed from its semiconductor manufacturing operations, SilTerra.
Having since acquiring from Khazanah, the group has added substantial earnings from the turnaround of the chip-making plant. The other contributor was its oil and gas acquisition, Ping Petroleum Limited which also came in strongly for the quarter.
For the quarter DNeX reported revenue of RM270.9 million, of which the new Technology segment that includes SilTerra, stood as the largest contributor at RM148.8 million or 55 percent of total revenue. This was followed by the Energy segment with RM78 million revenue or 29 percent and the remaining from the Information Technology segment, accounting for RM44.1 million or 16 percent.
The group registered a significantly improved profit after tax of RM301.5 million, mainly attributed to the fair value of the net identifiable assets and negative goodwill from the acquisition of SilTerra amounting to RM264.5 million. Excluding this, the normalised PAT stood at RM41.3 million.
“It is an encouraging start to the year as SilTerra reports a turnaround to profitability from transformation initiatives implemented to enhance manufacturing processes and optimise efficiencies. In addition, higher crude oil prices have benefitted Ping, a low-cost O&G upstream operator,” said Tan Sri Syed Zainal Abidin Syed Mohamed Tahir, Group Managing Director of DNeX.
DNeX and its partner Beijing Integrated Circuit Advanced Manufacturing and High-End Equipment Equity Investment Fund Center (Limited Partnership) will continue efforts to enhance SilTerra’s competitive edge. Key focus areas will be on removing bottleneck, improving plant utilisation rate and efficiency, streamlining product portfolio and working towards securing more long-term contracts.
The Group is also exploring opportunities to unlock Ping’s untapped potential and maximise economic value from its asset portfolio by rejuvenating existing wells to monetise economically attractive reserves in the Anasuria Cluster. It also intends to develop its first greenfield project, Avalon, as part of diversifying its asset portfolio.
In tandem with the recovery of trade volume and increase in global IT spending, the Group will be enhancing its Trade Facilitation related eServices and digital solutions in the Business-to-Government and Business-to-Business segments to further strengthen its position as the preferred technology partner for all sectors.
