DNeX’s 4Q17 headline PATAMI fell 53% yoy to RM14.7m mainly due to large drop in associate contribution (Ping). However, excluding Ping’s one-off tax credit charge of RM23.5m in 4QFY16 and other one-off items, core earnings increased by 62%, driving FY17 core earnings to RM51.8m (+35%). Overall, FY17 core earnings were inline with our estimates at 99% but trailed consensus at 90%.
On quarterly basis, revenue from energy segment improved by 63% to RM19.9m (3QFY17: RM12.2m) mainly due to maiden contribution from implementation of the portable container system (PCS) at select fisherman ports. This helped to narrow down the loss before tax of its energy ex-Ping businesses to RM0.2m (3QFY17 LBT: RM3.8m). Higher crude oil prices also had more than double the contribution from Ping to RM9.2m (3QFY17: RM4.5m).
DNeX’s IT segment PBT slipped by 7% as it recognised the smaller and last portion of VEP and RC capex amounting to RM8.5m (4QFY16: RM17m) amidst the absence of one-off system integrated project amounting to RM7m provided for Jabatan Kerja Raya (JKR). Overall, we think its trade facilitation business through National Single Window (NSW) service will continue to be the bread and butter of the segment as its contract was extended for another 11 months until 31st August 2019.
We maintain our BUY call on the stock with unchanged TP of RM0.52, derived using SOP methodology. We like the company for its growth potential through various M&A exercise.
Source: BIMB Securities Research - 28 Feb 2018
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Created by kltrader | Aug 19, 2024
Created by kltrader | Aug 12, 2024
Created by kltrader | Aug 12, 2024