Dagang NeXchange Berhad Annual Report 2019

KEY MESSAGES annual report 2019 17 SHARE PERFORMANCE Value of DNeX shares sees nominal change from 23 sen at start of year to 27 sen at close of the year. The movement of DNeX shares somewhat shadows KLSE’s Technology Index (see chart on the right) and share performance has no direct impact on the performance of the Company itself. The 12 months share movement can be seen in the share performance chart on page 51 of this annual report. 2020 OUTLOOK Global economies are faced with an unprecedented situation with headwinds from multiple fronts and businesses in Malaysia are not sparred. Countries all around the world are working relentlessly and have taken various measures to combat the Covid-19 pandemic such as implementing Movement Control Order (“MCO”) and closing their borders. Such developments have limited physical movement and impacted a lot of business and trade activities globally. Governments and corporate leaders are changing how they work amid such unprecedented situation. The Covid-19 pandemic will undeniably have an adverse impact to businesses in the country and globally including us. But the Management believes the impact by the pandemic to the Group is manageable as most of our projects are ongoing especially Government projects and these is expected to carry us through 2020. Selected Government projects continues to operate as usual during the MCO as part of Essential Services albeit with extra precautions for employee welfare and travel. Governments and corporations are foreseen switching to full digitalisation or at least increasing the level of digitalisation appears an absolute necessity for businesses and organisations. Moving forward, DNeX is determined to intensify its focus in technology sector as the demand for technology continues to rise. The hit to crude oil price is impacting on the Oil & Gas industry, thus the potential cut in capital expenditure spending by the oil majors can affect provision of services in the upstream segment. DNeX’s major energy related contracts fall within downstream segment and could therefore be able to generate a steady revenue stream. Operations of our 30% owned associate company is business as usual for now. The Management will continue to pursue cost optimisation activities within the Group to drive operational efficiency and ensure earnings sustainability. Furthermore, we may well consider monetising investments that may yield attractive returns particularly those with smaller shareholding and controls. DNeX KLSE Technology Index