KUALA LUMPUR, 28 August 2025 — Dagang NeXchange Bhd (DNeX) celebrated a financial rebound in its second quarter ended 30 June 2025, returning to profitability on the back of cost-optimized IT operations and a resilient energy segment. The company’s net profit attributable to shareholders soared to RM19.9 million, a significant jump from just RM5.0 million a year earlier. Simultaneously, the group’s before-tax position shifted from a RM16.4 million loss to a RM9.0 million profit, signalling a positive turnaround in financial momentum.
IT Segment: Strong Turnaround amidst Strategic Refocus
DNeX’s Information Technology division became a key contributor to the turnaround, delivering a profit before tax (PBT) of RM15.5 million, compared to a marginal RM0.2 million in 2QFY2024. This sharp rise was primarily driven by streamlined operations and effective cost optimization following the divestment of its Subsea Telco business. Total segment revenue eased to RM40.4 million, down from RM49.9 million, reflecting the streamlined business focus.
Energy Segment: Doubling of Profits Fuels Growth
The Energy arm posted an even stronger rebound, more than doubling its PBT to RM24.9 million, up from RM12.0 million a year earlier. The uptick in performance was bolstered by non-cash unrealised foreign exchange gains and reduced finance costs following the redemption of secured bonds. However, segment revenue declined to RM66.9 million (from RM91.9 million), impacted by lower crude prices and paused lifting ahead of scheduled maintenance. Nonetheless, production volume rose by 14%, with deferred liftings to be captured in the upcoming quarter.
Semiconductor Segment: Challenges Amid Operational Disruptions
DNeX’s Semiconductor (Technology) segment posted a loss before tax of RM28.9 million, wider than the RM18.7 million loss recorded in the prior year. The deficit stemmed from an unexpected power outage at Kulim Hi-Tech Park in May, which disrupted SilTerra’s operations. Despite this, revenue remained largely stable at RM155.3 million, thanks to a stronger pricing environment; moreover, emerging technologies comprised 45% of its revenue mix, more than doubling from 20% a year ago.
Non-Cash Adjustment: Deferred Tax Reversal Adds Financial Cushion
The quarter also included a RM7.1 million reversal of deferred tax liabilities related to the UK’s Energy Profits Levy (EPL) extension. This adjustment forms part of a larger RM100.7 million deferred tax liability recorded earlier in the year, which is expected to unwind over time, offering future tax relief.
Why This Matters for Investors
DNeX’s robust 2QFY2025 signifies a clear pivot from earlier fiscal challenges. The revived IT and Energy segments underscore its ability to recalibrate and capitalize under shifting market dynamics. The Technology arm, while currently under pressure, still demonstrates longevity through its growing exposure to emerging tech—a positive signal for long-term strategic diversification. The reversal of deferred tax liabilities further sweetens future earnings. Collectively, these developments position DNeX for more consistent growth and improved resilience.
The Ledger Asia will continue to provide in-depth tracking—stay alert to developments such as production ramp-ups, IT segment expansion, and further financial strategies that could extend the rebound trend.
