KUALA LUMPUR: Dagang NeXchange Bhd (DNeX) is well-positioned for future growth, as it benefits from increased demand for semiconductor chips as well as the upstream oil production outlook.
Group managing director Tan Seri Syed Zainal Abidin Syed Mohamed Tahir said DNeX strategic investments in SilTerra Malaysia Sdn Bhd (SilTerra) and Ping Petroleum Ltd (Ping) had transformed the company into a formidable industry player in the technology and energy segments.
Syed Zainal said DNeX's efforts to improve efficiencies, productivity and overall performance across its core businesses have resulted in a strong turnaround in its financial performance.
"Global private enterprises now contribute the majority of DNeX's revenue streams as we diversify our revenue concentration beyond local public sector projects.
"Looking ahead, we are positive of our prospects as we continue to strengthen our competencies and competitiveness across the core business segments we operate in," he said at the company's 51st annual general meeting (AGM).
Syed Zainal said DNeX's transformation efforts in SilTerra are focused on increasing wafer shipment output, optimising capacity mix, and leveraging the current semiconductor shortage to increase average selling prices.
"The positive results arising from these initiatives are expected to grow even further as SilTerra embarks on higher-margin emerging technologies," he said.
Meanwhile, Syed Zainal said DNeX is working towards securing more long-term contracts that provide steady contributions to enhance business sustainability.
This includes the recently clinched US$400 million multi-year contract from Chiphone Technology and the multi-year contract from ILI Technology Corp.
"The energy segment will also be positively impacted by the rise in oil prices, which are now trading at levels above US$70 per barrel.
"Ping is exploring opportunities to unlock its untapped potential and maximise economic value from its asset portfolio.
"There is opportunity to further improve Ping's production output by rejuvenating existing wells to monetise economically attractive reserves in the Anasuria Cluster and by accelerating the development of greenfield portfolios, such as Avalon," he said.
Under the information technology (IT) segment, Syed Zainal said the mid-term target is to scale DNeX's operations and presence beyond borders to cover key markets in ASEAN.
DNeX will foray into business-to-business (B2B), and small-medium enterprise (SME) segments through new innovative offerings to nurture a thriving trading community in Malaysia and the region.
"An upward trend in the IT industry presents DNeX with robust growth opportunities, backed by the acceleration of digitalisation, automation and technology adoption across both the private and public sectors.
"With the execution of our business plans for the financial year 2022 and beyond, we are making further inroads into turning DNeX into a multinational corporation that is trusted for its world-class services and expertise," he added.