Dagang Nexchange Berhad

Titan Trading Notes For Monday [6/1/2025]:

Although KLCI retraced and closed red around the 1629 points region, the overall market sentiment was still a pretty good one. Daily trading volume was also able to surge back towards the 3.69 billion mark, which is a pretty good start for the year.

Main stocks that showed strong buying momentum would be the likes of MYEG, DNEX, WCT, UEMS, SIMEPROP, EKOVEST, MRCB, WINSTAR, YTL, IWCITY, GENETEC, CARLORINO, SCGBHD, MAHSING, PWRWELL, and VELESTO. All of which were able to sustain their rallies throughout the day on the top volumes list.

$DNEX / 4456 (DAGANG NEXCHANGE BERHAD) had an interesting breakout towards the RM 0.43+ regions with huge volume on Friday, making it one of the star performers last week. This came after it broke out and consolidated around its RM 0.375 support levels over the past month.

So far looking quite ripe for a new uptrend rally here if able to keep up. As long as able to sustain above its RM 0.41+ immediate support level, could continue to trend back up towards the RM 0.45 - RM 0.48+ major resistance levels soon in the coming weeks.

Will be monitoring DNEX closely here as something big could be brewing soon.

$UEMS / 5148 (UEM SUNRISE BERHAD) on the other hand since consolidating over the past 5-6 months without much volume and action, was able to have a huge breakout towards the RM 1.17+ regions during last Friday here out of nowhere.

So far looking quite strong here as it just broke out from its RM 1.10+ main downtrend resistance on the daily chart. If able to sustain the buying momentum, could spark a new uptrend rally back towards the RM 1.28+ major resistance levels soon in the coming weeks.

Will be monitoring UEMS closely here.

$SIMEPROP / 5288 (SIME DARBY PROPERTY BERHAD) although took a hit and retraced back towards the RM 1.63+ support levels last week, was able to hold well and broke out towards the RM 1.75 regions with huge volume and buying momentum on Friday.

This is a pretty strong bullish signal here. If able to keep this up, could trend back up towards its RM 1.78 all time high levels soon for an uptrend continuation pattern in the coming week.

Will be monitoring SIMEPROP closely.

Titan Weekend Chart Reviews

$DNEX / 4456 (DAGANG NEXCHANGE BERHAD)

Could be a potential huge rounding bottom forming here too since it was able to breakout strong from its RM 0.42+ major resistance levels.

For now looking strong and if able to sustain, could trend back towards its RM 0.45+ major resistance levels soon.

Support: RM 0.42, RM 0.40 areas
Resistance: RM 0.45, RM 0.475, RM 0.485 areas

Titan Trading Notes For Thursday [12/12/2024]:

$KLCI closed slightly red around the 1603 points region with an overall negative market sentiment today as we still saw over 650 counters closing red for the day along with it. Daily trading volume declined as we closed back towards the 2.58 billion mark today.

Main stocks that showed strong buying momentum would be the likes of DNEX, PBBANK, SNS, YNHPROP, MBSB, ELSOFT, ARMADA, CATPIALA, NATGATE, LWSABAH, GENETEC, and AZAMJAYA. All of which were able to sustain their rallies throughout the day despite the weak market sentiment.

$DNEX / 4456 (DAGANG NEXCHANGE BERHAD) since announcing its partnership with GAMUDA to distribute Google cloud solutions, was able to gap up and rally all the way towards the RM 0.415 regions with huge volume and buying momentum.

Although still facing some selling pressure above its RM 0.40 regions, today's closing at RM 0.40 was still a pretty good start for DNEX here. If able to keep this up, could start a brand new uptrend and move back towards the RM 0.42 - RM 0.45+ regions soon.

Will be monitoring DNEX closely here.

$IFCAMSC / 0023 (IFCA MSC BERHAD) today was able to breakout back towards the RM 0.69 regions with good volume and buying momentum here despite the weak market sentiment on the daily chart.

Although unable to close on its intraday high, its closing price of RM 0.685 was still a pretty good sign here. As long as able to sustain above its RM 0.65 support, could trend back up towards the RM 0.70 - RM 0.75+ regions soon for an uptrend continuation pattern.

Will be monitoring IFCAMSC closely here.

Dnex Partners Gamuda to Distribute Google Cloud Solutions

Dagang Nexchange Bhd (Dnex) said its wholly-owned subsidiary Dnex Solutions Sdn Bhd has entered into a joint venture and shareholders agreement with Gamuda Technologies Sdn Bhd, a unit of Gamuda Bhd, to manage and operate the business of providing Google Distributed Cloud (GDC) air-gapped services to the government and private clients in Malaysia.
‌
According to Dnex, this collaboration will include the procurement of GDC hardware, customised Artificial Intelligence solutions, applications development, ongoing client support, data migration and infrastructure maintenance.
‌
Under the terms of the partnership, Dnex Solutions and Gmauda Technologies will each have a 50% share in the JV company.
‌
According to the statement, the JV will be the sole provider for GDC services in Malaysia.
‌
It will leverage the combined resources and expertise of DNeX and Gamuda in delivering GDC services, a cloud-based service focusing on data sovereignty and further supported with advanced Artificial Intelligence capabilities.

$DNEX / 4456 (DAGANG NEXCHANGE BERHAD)
$GAMUDA / 5398 (GAMUDA BERHAD)

$DNEX / 4456 (DAGANG NEXCHANGE BERHAD)
Research Report HLIB

KUALA LUMPUR: Dagang NeXchange Bhd (DNeX) has appointed Faizal Sham Abu Mansor as its group chief executive officer (CEO), effective November 1, 2024.

© New Straits Times Press (M) Bhd

PETALING JAYA: Dagang Nexchange Bhd (Dnex) has appointed Faizal Sham Abu Mansor as its group chief executive officer effective Nov 1, 2024.

KUALA LUMPUR: Dagang NeXchange Bhd (DNeX) has appointed Faizal Sham Abu Mansor as its group CEO, effective Nov 1, 2024.

$DNEX / 4456 (DAGANG NEXCHANGE BERHAD) : Sovereign Cloud Update

On September 30, DNeX entered into a multi-year agreement with Google Cloud to deliver sovereign cloud services in Malaysia. This strategic partnership aims to address the increasing demand for cloud solutions that meet stringent data residency, security, and privacy requirements, particularly in regulated industries such as public services, financial services, healthcare, and energy. Through GDC, DNeX will offer organisations in these sectors access to Vertex AI, bringing an AI-powered sovereign cloud to Malaysia. This collaboration opens the door to secure and transformative innovations, such as using AI and advanced analytics to deliver integrated, citizen-centric digital government services, enhance treatments for chronic health conditions, and optimise energy production in hydro and solar power plants.

Additionally, DNeX plans to embed enterprise-grade AI across its various business lines, including automating wafer fabrication and streamlining daily operations. They also intend to incorporate large language models (LLMs) into key IT service offerings, such as the National Single Window (NSW) for Trade Facilitation, iGFMAS, and eGADS. This move could enhance the competitiveness of DNeX's IT products, potentially increasing its chances of securing more government contracts, especially with the growing focus on sovereign cloud services.

Why Sovereign AI Matters

In February, NVIDIA founder and CEO Jensen Huang highlighted the significance of sovereign AI during a discussion with the UAE’s Minister of AI, His Excellency Omar Al Olama. Huang described sovereign AI—which emphasizes a nation’s ownership of its data and the intelligence derived from it—as a major opportunity for global leaders. "It codifies your culture, your society’s intelligence, your common sense, your history—you own your own data," Huang stated. The partnership between DNeX and Google positions DNeX to potentially benefit from this trend, increasing its chances of securing future government projects.

However, a research report by HLIB notes that the potential contributions from sovereign cloud services remain uncertain at this stage and are expected to begin contributing to revenue only in the second half of 2025. Currently, DNeX’s stock is trading between RM0.37 and RM0.39, with resistance at RM0.39. It's worth monitoring for future developments.

Titan Trading Notes For Wednesday [2/10/2024]:

$KLCI had a decent rebound back towards the 1656 points region with an overall positive market sentiment as we rebounded from Monday's sell off. Daily trading volume however remains low around the 2.5 billion mark, which isn't a good sight.

Main stocks that showed strong buying momentum would be the likes of DNEX, LHI, TOPGLOV, HIAPTEK, CEB, LAYHONG, VS, SDCG, WCT, ELRIDGE, ASTRO, EKOVEST, AAX, EATECH, and SPSETIA. All of which were able to sustain their rallies throughout the day on the top volumes list.

$DNEX / 4456 (DAGANG NEXCHANGE BERHAD) after announcing its cloud partnership with Google, was able to breakout strong from its RM 0.365 main downtrend resistance and rallied all the way towards the RM 0.395 regions with huge volume and buying momentum today.

So far still facing strong selling pressure above the RM 0.39 regions here but as long as able to sustain above its RM 0.365 immediate support, could continue to trend up towards and beyond its RM 0.40+ major resistance levels soon.

Will be monitoring DNEX closely here.

$LHI / 6633 (LEONG HUP INTERNATIONAL BERHAD) since briefly retracing back towards its RM 0.68+ immediate support levels last week, was able to hold strong and broke out all the way towards the RM 0.76 regions with huge volume and buying momentum today.

So far looking quite strong here and as long as able to sustain above its RM 0.72 immediate support levels, could continue on towards and beyond the RM 0.78 - RM 0.80+ major resistance levels soon for an uptrend continuation pattern.

Will be monitoring LHI closely here as it remains one of the leading poultry stocks.

$HARTA / 5168 (HARTALEGA HOLDINGS BERHAD) since retracing all the way back towards the RM 2.70 major support levels, was able to hold above its support and recover back quite well over the past 2 weeks here, breaking out towards the RM 2.90+ regions with good volume today.

So far seems quite ripe for a potential uptrend continuation pattern here. As long as able to hold above its RM 2.85+ immediate support levels, could continue on towards and beyond the RM 3 - RM 3.20+ major resistance levels soon.

Will be monitoring HARTA closely here.

$DNEX / 4456 (DAGANG NEXCHANGE BERHAD)
Research by HLIB

KUALA LUMPUR: Shares in Dagang NeXchange Bhd (DNeX) jumped over 16% in early trade Tuesday after announcing a multi-year deal with Google Cloud to provide sovereign cloud services in the country.

PETALING JAYA: Dagang NeXchange Bhd (Dnex) and Google Cloud have formed a multi-year partnership to provide next-generation sovereign cloud services in Malaysia, meeting the increasing demand for secure and compliant cloud solutions in regulated industries.

KUALA LUMPUR: Dagang NeXchange Bhd (DNeX) has entered into a multi-year agreement with Google Cloud to provide next-generation sovereign cloud services in Malaysia.

© New Straits Times Press (M) Bhd

KUALA LUMPUR: Dagang NeXchange Bhd (DNeX) and Google Cloud have formed a multi-year partnership to provide next-generation sovereign cloud services in Malaysia, meeting the increasing demand for secure and compliant cloud solutions in regulated industries.

DNeX Partners Google to Provide Cloud Services in Malaysia

Dagang NeXchange Bhd (KL:DNEX) said on Monday that it is partnering with Singapore-based Google Asia Pacific Pte Ltd to provide sovereign cloud services in the country.

DNeX signed a Google Cloud Partner Advantage commercial agreement with Google, authorising it to operate Google Distributed Cloud as a managed provider, with a focus on air-gapped configurations for organisations in Malaysia, according to the company in a filing with Bursa Malaysia.
‌
DNeX said the agreement allows the company to resell Google’s cloud solutions, including Google Cloud Platform (Public Cloud), Google Distributed Cloud — Edge (Connected), and Google Distributed Cloud — Air-gapped (Disconnected).
‌
The deal also provides access to other advanced Google technologies such as artificial intelligence (AI), big data, and analytics.
‌
Additionally, this collaboration aims to expand DNeX’s information technology services by offering hosting solutions to meet the growing demand for in-country data centres and cloud infrastructure in Malaysia.
‌
On the other hand, DNeX has entered into a three-year memorandum of understanding with Google to explore how Google Cloud’s services and products can enhance DNeX’s AI capabilities and the technology landscape in Malaysia.
‌
This collaboration follows Google’s earlier announcement in May to invest US$2 billion (RM8.25 billion) in establishing its first data centre and Google Cloud region in Malaysia. The initiative is part of Google’s broader plan to expand its presence and technological footprint in the country.
‌
“Organisations in Malaysia's regulated industries are eager to deliver modern digital services to their stakeholders, but are constrained by limited access to cloud services that meet strict sovereignty requirements…this unique solution will unlock possibilities for secure and transformative innovations, such as the use of AI and advanced analytics,” said DNeX executive chairman Tan Sri Syed Zainal Abdin Syed Mohamed Tahir Jamalullail in a statement.

“Moreover, we plan to integrate large language models into our key IT services offerings, such as the National Single Window for trade facilitation, iGFMAS, and EGADS, as part of efforts to empower our customers with advanced analytics and process automation.
‌
"Through our partnership with Google Cloud, we foresee our offerings to be distinctly complementary to highly regulated institutions and government agencies, facilitating controlled deployment of cutting-edge and energy-efficient AI solutions on customers' premises ," he added.
‌
DNeX operates in the technology, energy, and IT sectors. The technology segment is the largest contributor, accounting for 52.4% of the group’s total revenue of RM298.11 million for the second quarter ended June 30, 2024, followed by energy (30.8%) and IT (16.8%).
‌
Shares of DNeX closed down half a sen or 1.47% at 33.5 sen on Monday, giving the company a market capitalisation of RM1.18 billion. Year to date, the counter has fallen over 16%.

$DNEX / 4456 (DAGANG NEXCHANGE BERHAD)

https://cutt.ly/GeIO2ZGq

$DNEX / 4456 (DAGANG NEXCHANGE BERHAD)
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

$DNEX / 4456 (DAGANG NEXCHANGE BERHAD)

Titan Trading Notes For Monday [12/8/2024]:

$KLSE-KLCI had a decent rebound back towards the 1596 points regions during last Friday with an overall positive market sentiment as our market had been rebounding well over the past week from Monday's selling activities. Daily trading volume remained around the 4.1 billion mark, which is pretty decent.

Main stocks that showed strong buying momentum during last Friday would be the likes of CEB, MYEG, TECHNAX, EKOVEST, ATAIMS, DNEX, SNS, TOPGLOV, MRCB, MNHLDG, NOVAMSC, SIMEPROP, JCY, SUNWAY, YTLPOWR, MAHSING, and KUCINGKO. All of which were able to sustain their rallies throughout the day on the top volumes list.

$ATAIMS / 8176 (ATA IMS BERHAD) since retracing back towards the RM 0.35+ major support levels, had been able to rebound quite well earlier last week all the way towards the RM 0.45 main downtrend resistance with good volume and buying momentum.

This came after news of its JV announcement with a China partner, potentially catalysing the stock. For now as long as able to sustain above its RM 0.40+ immediate support, could continue on towards and beyond the RM 0.485 - RM 0.50+ regions for an uptrend continuation pattern.

Will be monitoring ATAIMS closely here.

$DNEX / 4456 (DAGANG NEXCHANGE BERHAD) since breaking out towards the RM 0.52+ regions, had actually been retracing over the past 2 months all the way back towards the RM 0.35+ major support levels, and was able to rebound strong back towards the RM 0.42+ regions with good volume.

For now as long as able to sustain above the RM 0.40+ immediate support levels, could breakout from the RM 0.42 main downtrend resistance, potentially trending upwards to the RM 0.435 - RM 0.45+ regions soon.

Will be monitoring DNEX closely here as the NIISE project announcement should be made soon.

FPHB after retracing back towards the RM 0.54+ major support levels, was able to hold well and breakout from its RM 0.63+ main downtrend resistance with good volume and buying momentum late last week.

So far looking quite strong here and as long as able to sustain above its RM 0.61+ immediate support levels, could continue on towards and beyond the RM 0.70+ major resistance levels soon for an uptrend continuation pattern.

Will be monitoring FPHB closely here

NIISe Bid Race to be Revealed Soon: Who Will Emerge Victorious?

Recent reports suggest that $DNEX / 4456 (DAGANG NEXCHANGE BERHAD) and $THETA / 9075 (THETA EDGE BERHAD) are currently leading the bid for the National Integrated Immigration System (NIISe) project. According to sources cited by The Edge, the tender committee met last week to shortlist the proposed awardees, with an official announcement expected soon.

$IRIS / 0010 (IRIS CORPORATION BERHAD) originally secured the project in 2021 with a bid of RM1.16 billion. However, the contract was terminated in August last year due to delays.

The NIISe project aims to integrate border control systems across various units under the Ministry of Home Affairs, enhancing national border security and improving immigration management efficiency.

DNEX’s bid is higher, ranging between RM1.1 billion and RM1.2 billion, and proposes using the existing government system. In contrast, Theta's bid is lower at RM800 million, suggesting the development of a new border control system. Sources indicate that DNEX’s proposal is more standardized and rigorously tested, while Theta offers a cost advantage but needs to focus more on system development.

Rumors also suggest that Theta is preparing to poach senior executives from $HTPADU / 5028 (HEITECH PADU BERHAD), another shortlisted bidder. The NIISe project bid is highly competitive, with DNEX, Theta, and HeiTech Padu emerging as the final three contenders. Previously, $REDTONE / 0032 (REDTONE INTERNATIONAL BERHAD) was also in the race. BJCORP founder Tan Sri Vincent Tan, who holds a 40.79% stake in REDtone Digital, has acquired 600,000 shares in Theta and 3.2 million shares in DNEX.

Despite REDtone Digital’s active maneuvers, they eventually paused, leaving DNEX, Theta, and HeiTech Padu as the top contenders.

Interestingly, Theta's share price has outperformed DNEX recently. Over the past month, Theta's share price has increased by almost 50%, while DNEX’s share price has decreased by 6%. This performance, coupled with Theta's recent contract awards, suggests that Theta might have a higher chance of winning the NIISe project.

$DNEX / 4456 (DAGANG NEXCHANGE BERHAD)
DNeX’s Ping Petroleum expands Malaysian presence with new production sharing contract with PETRONAS

Bursa Announcement: https://bit.ly/4fmGYi4

Change in Audit Committee - TUN NOOR SHAHYA BT TUN ABDUL RAZAK

OTHERSDAGANG NeXCHANGE BERHAD ("DNeX")
- CHANGE IN THE COMPOSITION OF THE BOARD PROCUREMENT AND TENDER COMMITTEE, WHISTLEBLOWING COMMITTEE AND RISK, GOVERNANCE AND SUSTAINABILITY COMMITTEE, AND TRANSITION AND TRANSFORMATION COMMITTEE

Change in Boardroom - PUAN HASLINDA BT HUSSEIN

Change in Boardroom - TUN NOOR SHAHYA BT TUN ABDUL RAZAK

Change in Boardroom - ENCIK MOHD ISA BIN ISMAIL

KUALA LUMPUR: Dagang NeXchange Bhd's (DNeX) wholly-owned subsidiary Dagang Net Technologies Sdn Bhd has completed the implementation of Saudi Arabia’s Makkah Route initiative across six airports in three countries.

© New Straits Times Press (M) Bhd

$DNEX / 4456 (DAGANG NEXCHANGE BERHAD): Navigating Downtrend

The company's share price has been on a continuous downtrend for four trading days. Yesterday, it broke the support level, closing at RM0.475, below the RM0.48 support. The MACD has already indicated a death cross. Consequently, it's not surprising that the share price opened lower today at RM0.48 and is currently trading at RM0.465, with the lowest point being RM0.46, which is its current support. The share price is now below the SMA20, and the RSI is nearing 50. This is believed to be a normal retracement. As long as the share price stays above RM0.46, there is a potential to challenge RM0.48 again. Lastly, the NIISe project winner is expected to be announced this week, with DNEX as one of the bidders. Although winning this project may not significantly impact the company since O&G and Silterra remain the largest contributors, it is still a positive outcome.

Resistance Levels: RM0.48, RM0.505
Support Levels: RM0.46, RM0.445

$DNEX / 4456 (DAGANG NEXCHANGE BERHAD)
DNEX POSITIONS ITSELF FOR THE FUTURE; DIVERSIFIES CUSTOMER BASE AND REVENUE STREAMS

Bursa Announcement: https://bit.ly/4c6ZtoS

General Meetings: Outcome of Meeting