KUALA LUMPUR (Aug 21): Dagang Nexchange Bhd’s (KL:DNEX) second-quarter net profit jumped 33.2% from a year earlier, driven by a turnaround in its semiconductor division and improved margins in its information technology (IT) segment.
Net profit for the three months ended June 30, 2026 (2QFY2026) was RM26.55 million compared to RM19.94 million for 2QFY2025, the group’s bourse filing on Friday showed.
Profitability was also lifted by a sharply higher other income of RM333.4 million during the quarter, as opposed to RM2.1 million previously. Lower depreciation and amortisation, together with a tax credit reversal also boosted its bottomline.
These were partly offset by weaker performance from its energy segment, which was affected by higher operating costs following gas shortages caused by the maintenance of a gas field.
Revenue for 2QFY2026 grew 8.4% to RM284.81 million from RM262.71 million, primarily driven by increased semiconductor contribution as wafer price rose to US$814 each from US$732, and higher shipment volumes of 53,000 units compared with 46,000 units previously.
Emerging technologies accounted for 57% of the semiconductor division’s revenue in 2QFY2026, up from 45% a year earlier.
The division posted a profit before tax (PBT) of RM16 million, compared with a loss before tax of RM28.9 million previously, supported by the higher revenue and improved operating margins.
The energy segment’s revenue, however, fell 18% as its downstream business weakened, pulling PBT down 72% to RM6.95 million from RM24.9 million.
Revenue from the IT segment grew 5%, supported by stronger contribution from its trade facilitation business, leading to PBT rising 40% to RM21.7 million from RM15.5 million.
For the six months ended June 30, 2026 (1HFY2026), DNeX returned to the black with a net profit of RM39.33 million, compared with a net loss of RM59.09 million for 1HFY2025; revenue dipped 1% to RM552.36 million from RM559.54 million.
Looking ahead, DNeX expects its semiconductor segment to remain resilient, supported by sustained demand from artificial intelligence (AI), high-performance computing, automotive electronics, industrial automation and data centre applications. Structural trends in digitalisation, electrification and advanced connectivity are also expected to support semiconductor demand over the medium to long term, the group said.
However, it noted the energy segment remains exposed to crude oil price volatility, geopolitical uncertainties, regulatory changes, foreign exchange fluctuations and inflationary cost pressures.
DNeX said it will maintain a prudent and disciplined approach to risk management while strengthening its financial resilience and operational agility to navigate market uncertainties and support sustainable long-term growth.
No dividend was declared with the latest results.
Shares of DNeX closed half a sen lower at 51 sen on Friday, giving the group a market capitalisation of RM1.78 billion.