However, this was an 86% year-on-year drop from RM293.56 million a year ago due to a high base effect arising from a one-off bargain purchase effect following the acquisition of a 60% interest in SilTerra Malaysia Sdn Bhd.
During the acquisition of the Kedah-based semiconductor wafer foundry, DNeX recorded a RM264.51 million gain or negative goodwill, from the acquisition, in Q1 FY2022.
DNeX’s revenue grew by 55% year-on-year to RM419.6 million from RM270.9 million a year ago (Q1 FY2022), driven by higher contribution from the technology and energy businesses.
Revenue from the technology segment rose 85% to RM274.7 million, making it the anchor revenue contributor, accounting for 65% of total revenue. The improved performance was on the back of the consolidation of SilTerra’s three months financial results during the quarter, as compared to two months in Q1 FY2022.
The energy business made up 24% of total revenue with RM101.6 million, followed by the information technology (IT) division contributing RM43.3 million or 10% of total revenue.
DNeX group MD Syed Zainal Abidin Syed Mohamed Tahir was pleased to achieve solid performance despite the challenging operating environment.
“In view of the global economic uncertainties ahead, the group will focus on optimising costs while maximising business value to ensure long-term sustainability.”
He also said the strengthening of the US dollar is favourable to DNeX, with more than 80% of revenue transacted in USD.
“Particularly at SilTerra, we will continue to focus on investing in new emerging technologies that command higher average selling prices for long-term sustainability,” he said.
He said its energy division is expected to benefit from stabilising Brent crude oil prices over the near-term on the back of Russian oil sanctions and production cuts by OPEC+.
“We are keen to unlock the remaining economic reserves through infill drilling and facility de-bottlenecking.
“We are confident that our energy business, anchored by Ping Petroleum Ltd, will continue to grow as a Malaysian-led company and expand and unlock the potential of other assets within the UK and Southeast Asia region,” he said.
In the IT division, newly-introduced services under trade facilitation, previously under pilot testing, have started to go live, he said.
DNeX’s balance sheet remains healthy. As at Sept 30, it was in a net cash position with total cash of RM1.05 billion exceeding total borrowings of RM322.6 million.
At the close of trade today, DNeX’s share price dropped 5 sen to 57 sen, valuing the company at RM1.78 billion.