‘Genaxis has a lot of growth potential’ | http://www.klsescreener.com/v2/news/view/342147

DAGANG NeXchange Bhd (DNeX) is looking to replicate its National Single Window (NSW) for trade facilitation in Asia-Pacific and Africa.

Towards this end, talks have been ongoing and DNeX is expected to take part in some of the tenders.

“I think we are prepared for that (expansion to Asia-Pacific and Africa). That is our plan for this year,” says executive deputy chairman Datuk Samsul Husin in an exclusive interview with The Edge.

“I think it’s time for us to go abroad. We have accumulated experience in the last 25 to 27 years and this is our product — which we developed with our people — and we have the infrastructure ready. It’s not an easy application to build as it involves a lot of stakeholders in the trade community. It’s high time for us to try to sell our expertise and compete with the best out there.”

The NSW entails the facilitation of electronic Customs-related transactions and duty payments, and electronic document transfers among manufacturers, importers, exporters, forwarders, shipping agents, terminal and port operators, banks, port authorities and permit-issuing agencies, among others.

DNeX has been the operator of the NSW since its launch in 2009, and has thus far received a couple of extensions to this concession, initially for two years — from Sept 25, 2016, to Sept 24, 2018 — and more recently, to Aug 31, 2019.

“The barrier to entry [for the NSW business] is capital and knowledge. But being in the space for the last 25 years, not many [competitors] have the pool of people that understand the industry. It’s not just about technology but also about building a relationship with the stakeholders of the NSW. There are so many associations, shipping companies and so on, so that is our value,” says Samsul.

NSW is DNeX’s main profit generator. The company’s IT arm provides NSW and other IT offerings such as vehicle entry permits and road charges, ework permits and 1Trade. DNeX also has an energy arm, which has, among others, oil exploration and other related oil and gas businesses with companies such as Ping Petroleum Ltd and OGPC Sdn Bhd.

For its nine months ended September 2017, DNeX posted a net profit of RM41.92 million on the back of RM142.43 million in revenue. According to its notes to the financials, the IT segment generated 72.51% of profit before tax.

Other than venturing abroad, DNeX has been looking to hedge its bets, being less dependent on the local NSW concession.

Among the initiatives being undertaken is a proposed acquisition last week of a 51% stake in Genaxis Group Sdn Bhd for RM10 million. Genaxis’ latest financials are not available, but its 60% unit and jewel in the crown, Innovation Associates Consulting Sdn Bhd (IAC), has been performing well. For its financial year ended December 2016, IAC raked in RM1.98 million from RM54.45 million in sales.

Samsul says there are profit guarantees in place and more information will be divulged when the acquisition is concluded.

“IAC has projects [such as] GFMAS (Government Financial and Accounting Management System), which is the accrual accounting system for the Malaysian government. They (IAC) are one of the first in the world to try to do accrual accounting for the government. This project means a lot and there is a lot of potential. All the experience they (IAC) have gathered in the past more than 10 years in the market ... so they are looking to take on bigger projects not only in Malaysia but also in the region,” he explains.

As at end-September 2017, DNeX had cash and cash equivalents of RM70.79 million and secured long-term bank borrowings of RM17.50 million. For the nine months ended September 2017, it incurred finance costs of a mere RM441,000.

In a research report released on Dec 22 last year, CIMB Investment Bank Bhd had an “add” call on DNeX, with a target price of 74 sen, which is a 54.1% premium to its closing price of 48 sen last Thursday. Its market capitalisation stood at RM842.6 million.

CIMB says, “The extension of the NSW concession and higher crude oil prices are potential re-rating catalysts for the stock. Key downside risks to our ‘add’ call are lower crude oil prices and a decline in NSW transaction volume post-expiry of its concession in September 2019.”

Formerly known as TIME Engineering Bhd, DNeX is helmed by low-profile executive deputy chairman Datuk Samsul Husin.

However, the former civil servant is said to be politically well connected. He had joined the Accountant General’s office in 1987 and spearheaded various projects — from the enforcement of accounting procedures to designing new systems to enhance financial management reporting, according to filings with Bursa Malaysia.

In 2013, Samsul led Censof Holdings Bhd in taking over a 45.03% controlling interest in DNeX (then known as TIME Engineering) from Khazanah Nasional Bhd. The company ventured into the oil and gas sector in 2014, shortly before crude oil prices collapsed.

DNeX holds the concession from the Royal Malaysian Customs Department to operate and maintain the National Single Window (NSW) ecosystem, which is its breadwinner. It is also the service provider for the Home Ministry’s eWork Permit System.

DNeX is not as big as MyEG Services Bhd but it should not be ignored as a candidate for the pre-election rally.

. Details of Corporate ProposalInvolve issuance of new type/class of securities ?NoTypes of corporate proposalESOSDetails of corporate proposalEmployees Share Option SchemeNo. of shares issued under this corporate proposal133,400Issue price per share ($$)Malaysian Ringgit (MYR)   0.2450Par Value($$) (if applicable)Malaysian Ringgit (MYR)   0.000Latest issued share capital after the above corporate proposal in the followingUnits1,755,505,678Issued Share Capital ($$)Malaysian Ringgit (MYR) 352,028,773.970Listing Date16 Jan 2018

KUALA LUMPUR (Jan 4): AllianceDBS Research said Dagang NeXchange Bhd (Dnex) had on Jan 3 traded higher to 55.5 sen before closing at 54 sen (up 1 sen or 1.88%).

In its stock trend monitor yesterday, the research house said Dnex continued to trade above the 20-day (blue) and 50-day (red) moving average lines.

“Following the up close on Jan 3, the stock is likely to move higher again with immediate hurdle at 56.5 sen.

“A rise above 56.5 sen would lift the stock to the next resistance zone, 59 sen – 62 sen.

“The support is pegged at 53 sen. A fall below 53 sen should see further price decline to the subsequent support zone, 48 sen – 50 sen,” it said.

AllianceDBS Research said stock volume traded on Jan 3 was 74.4 million shares compared to the 3-month average volume of 16.2 million shares.

The research house said that indicators wise, the MACD was above the 9-day moving average line with the buy signal remains intact.

It said the relative strength index indicated that the stock was currently in an overbought zone.

KUALA LUMPUR (Jan 4): AllianceDBS Research said Dagang NeXchange Bhd (Dnex) had on Jan 3 traded higher to 55.5 sen before closing at 54 sen (up 1 sen or 1.88%).

In its stock trend monitor yesterday, the research house said Dnex continued to trade above the 20-day (blue) and 50-day (red) moving average lines.

“Following the up close on Jan 3, the stock is likely to move higher again with immediate hurdle at 56.5 sen.

“A rise above 56.5 sen would lift the stock to the next resistance zone, 59 sen – 62 sen.

“The support is pegged at 53 sen. A fall below 53 sen should see further price decline to the subsequent support zone, 48 sen – 50 sen,” it said.

AllianceDBS Research said stock volume traded on Jan 3 was 74.4 million shares compared to the 3-month average volume of 16.2 million shares.

The research house said that indicators wise, the MACD was above the 9-day moving average line with the buy signal remains intact.

It said the relative strength index indicated that the stock was currently in an overbought zone.

KUALA LUMPUR (Jan 2): Dagang NeXchange Bhd (DNex) has acquired the exclusive rights to offer EC-Council Global Services (EGS) cyber security services in Malaysia through its wholly-owned subsidiary, DNeX Technology Sdn Bhd.

DNeX Technology had recently signed an exclusive brand license agreement with with EC-Council International Ltd to provide consultancy and advisory services based on the delivery model, methodology and brand of EGS.

“We are pleased to be working together with EC-Council to provide top notch cyber security consultancy and advisory in an increasingly growing market in the country,” said DNex executive deputy chairman Datuk Samsul Husin in a statement today. 

The agreement will give DNex access to EC-Council’s methodologies, enabling it to learn from cyber security implementation in key global economies. 

EC-Council has been a leading information security certification body since the launch of its flagship programme, Certified Ethical Hacker in 2002, DNex said. 

Meanwhile, EGS is a division of EC-Council that offers comprehensive services using a four-phased methodology to assess, block, correct and defend the cyber security of its clients.             

“With this licensing deal, DNex will offer the holistic approach to cyber security of EGS and develop a cyber security framework that helps in identification, protection, detection, response, and recovery to cyber threats to clients in Malaysia,” said Jay Bavisi, group president of EC-Council. 

At 11.37am, shares in DNex were up 3 sen or 6.91% at 51.5 sen, giving it a market capitalisation of RM912.79 million.

@paktua73.. saya suka dgn cerita paktua.. macam mana nak contact personal nak sambung cerita..hehehehe

KUALA LUMPUR: Mlabs Systems Bhd has signed an agreement via its wholly-owned subsidiary Multimedia Research Lab Sdn Bhd (MRL) to sell an initial US$300,000 (RM1.29 million) worth of high definition video conferencing products to China-listed Fortel Solutions Ltd.
 
Mlabs has also appointed the Hong Kong-based Fortel, an online content distribution platform provider, as its international distributor in China, the group said in a statement today.
 
Fortel committed to the US$300,000 purhcase of MRL’s products for an initial one-year term, which is renewable thereafter, Mlabs said.

MRL is involved in the trading of video conferencing systems and the provision of mobile application solutions.
 
Shares in Mlabs closed up 0.5 sen or 2.94% at 17.5 sen today on 31.5 million shares traded, making it one of the most actively traded counters on Bursa Malaysia today. It has a market capitalization of RM101.83 million.

http://www.klsescreener.com/v2/news/view/267965

Mlabs in collaboration with Thai company to provide IT tech support

TheEdge Thu, Aug 10, 2017 - 26 minutes ago

http://www.klsescreener.com/v2/news/view/266591