[%MlrF%]
Research by HLIB
Hold - TP RM0.37

"Dragged by Energy and IT slump"

DNEX posted 2Q24 core earnings of RM10.9m (-44% QoQ, -4% YoY), bringing1H23’s sum to RM28.6m (+4%). We deem the results below our estimates. Core bottom line dropped 44% QoQ owing to plunge in contribution from Energy segment due to slightly lower realised average oil price and lower net production rate and higher net opex/boe caused by shut in of Cook well in Apr-May. IT segment saw its PBT slump 98% to barely breakeven, dragged by lower cable installation and repair work services. Cut our FY24/25/26f forecasts by 12%/22%/24%. Maintain HOLD call with lower SOP-derived TP of RM0.37 (RM0.43) – pegged to valuation base year of FY25f.

Analyst:
Brian Chin
[%eSXM%]

$KLSE-DNEX
Research by HLIB
Hold - TP RM0.37

"Dragged by Energy and IT slump"

DNEX posted 2Q24 core earnings of RM10.9m (-44% QoQ, -4% YoY), bringing1H23’s sum to RM28.6m (+4%). We deem the results below our estimates. Core bottom line dropped 44% QoQ owing to plunge in contribution from Energy segment due to slightly lower realised average oil price and lower net production rate and higher net opex/boe caused by shut in of Cook well in Apr-May. IT segment saw its PBT slump 98% to barely breakeven, dragged by lower cable installation and repair work services. Cut our FY24/25/26f forecasts by 12%/22%/24%. Maintain HOLD call with lower SOP-derived TP of RM0.37 (RM0.43) – pegged to valuation base year of FY25f.

Analyst:
Brian Chin
brianchy@hlib.hongleong.com.my