Dagang NeXchange lifts 2Q profit 263% on semiconductor and IT gains
Dagang NeXchange Berhad (DNeX) reported a 263% jump in second-quarter profit before tax to RM32.7 million as higher semiconductor and information technology earnings offset weaker energy revenue.
Source: Dagang Nexchange Berhad · August 21, 2026 at 3:31 PM · AI-assisted report
Corroborated
KUALA LUMPUR, 21 AUGUST 2026 —
DNeX Posts Stronger Profit in 2QFY2026 as All Segments Drive Growth
Market Impact
CYBERJAYA, Aug 21 (Bloomberg/Reuters) – Dagang NeXchange Berhad (DNeX) reported a sharp rise in profitability for the second quarter ended June 30, 2026, as improved performance across its semiconductor, energy, and information technology (IT) businesses offset currency headwinds.
Group Profit Before Tax (PBT) surged to RM32.7 million in 2QFY2026 from RM9.0 million in the same period a year earlier, while Profit After Tax (PAT) climbed to RM26.6 million from RM19.7 million in 2QFY2025. For the first half of the financial year (1HFY2026), PBT rose 71% to RM56.0 million, compared with RM32.7 million in 1HFY2025, and PAT turned positive at RM44.9 million, reversing a RM82.3 million loss in the prior-year period.
The prior-year loss included a RM105.0 million non-cash deferred tax charge related to changes in the UK Energy Profits Levy.
Group revenue for 1HFY2026 edged down 1% to RM552.4 million due to the stronger Ringgit, which reduced reported figures when converted from US Dollar and Pound Sterling earnings. Excluding currency effects, revenue grew 4% year-on-year. Operating cash flow more than quadrupled to RM216.5 million from RM53.6 million, enabling RM179.5 million in capital expenditure across semiconductor and energy assets.
In 2QFY2026, group revenue rose 8% year-on-year and 6% quarter-on-quarter to RM284.8 million. Profit attributable to shareholders increased 33% to RM26.6 million, while basic earnings per share climbed to 0.76 sen from 0.57 sen in 2QFY2025.
Semiconductor Segment Leads Growth The semiconductor segment recorded revenue of RM187.4 million, up 21% from RM155.3 million in 2QFY2025, driven by higher shipment volumes and an improved average selling price. Emerging Technology products now account for 57% of segment revenue, up from 45% a year earlier. Segment PBT improved to RM16.0 million from a loss before tax of RM28.9 million in 2QFY2025, reflecting higher revenue and better operating margins.
DNeX highlighted sustained demand for artificial intelligence (AI), high-performance computing, automotive electronics, and data centre applications as key drivers. The group is prioritising capacity expansion, yield improvement, and selective partnerships as global supply chains realign.
Energy Segment Faces Currency Pressure but Sees Volume Growth
Energy segment revenue fell to RM54.7 million from RM67.0 million in 2QFY2025, largely due to the stronger Ringgit and lower downstream contributions. Excluding currency effects, upstream revenue grew 4% year-on-year, with lifting volumes rising 13% to 153,600 barrels (from 136,400 barrels in 2QFY2025) and the average realised crude oil price increasing 5% to USD72.9 per barrel.
PBT for the segment declined to RM7.0 million from RM24.9 million in 2QFY2025, partly due to the absence of a RM14.4 million foreign exchange gain recorded in the prior year. Excluding FX effects, PBT stood at RM7.1 million compared with RM10.5 million previously, reflecting higher operating costs tied to planned maintenance at a gas field.
Despite near-term challenges, DNeX is advancing its upstream portfolio. In Malaysia, the group is progressing toward first oil at the Abu Cluster, while in the UK North Sea, it continues to maximise value from the producing Anasuria Cluster. In June 2026, Ping Petroleum Limited acquired a 20% equity stake in TI Exploration & Production Sdn Bhd, a joint venture with Terengganu Inc’s energy arm, strengthening its foothold in Malaysia’s upstream sector.
IT Segment Expands with Trade and Government Contracts
The IT segment delivered PBT of RM21.7 million, up 40% from RM15.5 million in 2QFY2025, supported by higher revenue and improved margins in its Trade Facilitation business. Segment revenue rose 5% to RM42.7 million, driven by increased trade activity and higher transaction volumes.
DNeX continues to leverage long-term contracts for recurring revenue visibility. The group also expanded its role in Saudi Arabia’s Makkah Route initiative for the 2026 Hajj season, building on its trade facilitation and government systems expertise.
Strong Balance Sheet Supports Growth Plans As of June 30, 2026, DNeX maintained a financial position with RM694.7 million in cash and RM167.1 million in borrowings, resulting in a net cash balance of RM527.6 million. Total assets stood at RM3.6 billion, while total equity reached RM1.7 billion.
Vinie Chong Pui Ling, Interim Officer-in-Charge, Group Chief Operating Officer and Group Chief Financial Officer, said the improved earnings reflect strategic consolidation, cost optimisation, and integration initiatives across the group. “These efforts have strengthened our balance sheet, improved operating leverage, and placed the Group on a stronger and more resilient footing,” she said.
Looking ahead, DNeX aims to drive revenue growth and operational excellence through greater efficiency, cost discipline, and productivity, while maintaining disciplined capital management. The group remains focused on long-term value creation for shareholders.
Regional and Sectoral Implications The semiconductor segment’s performance aligns with broader trends in Southeast Asia’s tech supply chain, where Malaysia plays a key role in assembly, testing, and packaging. The shift toward higher-value products, particularly those supporting AI and data centre applications, positions DNeX to benefit from global demand shifts.
In the energy sector, DNeX’s upstream expansion in Malaysia and the UK reflects ongoing efforts by regional players to diversify production and reduce reliance on imported crude. The acquisition by Ping Petroleum in TI E&P Sdn Bhd signals continued consolidation in Malaysia’s upstream segment, particularly among state-linked and independent operators.
The IT segment’s involvement in high-profile government and trade facilitation projects, including in Saudi Arabia, underscores Malaysia’s growing reputation as a provider of mission-critical digital infrastructure, especially in emerging markets.
Market and Investor Outlook Analysts tracking Malaysian tech and energy counters will likely view DNeX’s results as a positive indicator of operational recovery and strategic execution. The group’s focus on high-margin segments and disciplined capital allocation may support valuation stability in a volatile macroeconomic environment.
With semiconductor demand expected to remain amid AI-driven growth and energy prices stabilising, DNeX appears well-positioned for sustained profitability. However, currency fluctuations and geopolitical risks in energy markets remain key monitoring points.
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