KUALA LUMPUR: Eighty per cent of Dagang NeXchange Bhd's future revenue will come from international operations of recently-acquired subsidiaries Ping Petroleum Ltd and SilTerra Malaysia Sdn Bhd, said group managing director Tan Sri Syed Zainal Abidin Syed Mohamed Tahir.
DNeX had completed a 60 per cent stake acquisition of loss-making semiconductor-based SilTerra from Khazanah Nasional Bhd on Monday.
Syed Zainal said DNeX's entry into the semiconductor market was timely given the current global chip shortage affecting the delivery of automotive and home appliances, notebooks, smartphones and video game consoles, among others.
On June 18, the company received shareholders' approval for the acquisition of an additional 60 per cent stake in Ping for US$78 million (RM314.3 million).
Upon completion of the exercise, DNeX will own 90 per cent of Ping shares.
The company believes the prospects of both the newly-acquired units are bright.
"Silterra is 100 per cent-export based. It is a US dollar-based transaction and we are looking at a contribution of 40-50 per cent to the total DNeX group's revenue.
"The profit will come. I have seen the projection for the next six to 12 months. It does give hope and light at the end of the tunnel.
"I think SilTerra will continue to dominate and provide the group with signifiant contribution.
"I am confident with the prospects of SilTerra based on the projection on the global semiconductor industry moving forward," he told reporters at the launch of DNeX's digital trade and logistics platform known as SealNet today.
Syed Zainal said DNeX aimed to secure several long-term partners to expand SilTerra's products mix and drive growth.
"We will be making a few announcements from now in terms of who are the partners that we have secured. That is the promise that we have given to Khazanah to bring value (to SilTerra)," he said.
On Ping, Syed Zainal said over the long term, the company was looking at opportunities in Malaysia and other Southeast Asian countries.
"Many oil majors are exiting the region. Shell is one of them. We are also talking to Petronas (Petroliam Nasional Bhd).
"Time will tell. This is still at an early stage but we always at the point of looking for opportunities. If we do this, it will be based on some form of partnerships," he said.
Meanwhile, Syed Zainal said DNeX expects SealNet's revenue to grow about 300 per cent from a low base.
SealNet is a digital trade and logistics platform that provides one-stop cloud-based logistics and cross border services to ease trade processes.
It is targeted at importers, exporters, manufacturers and trade-related businesses.