PETALING JAYA: The renewal of Dagang NeXchange Bhd’s (Dnex) contract to run the National Single Window trade-facilitation system is seen as a steady catalyst for earnings visibility, analysts say.
BIMB Research said it was maintaining the group’s earnings forecasts, given that the extension was widely expected.
The bigger picture, however, is the transformation of Dnex’s IT playbook.
Dnex, through its subsidiary Dagang Net Technologies Sdn Bhd secured a one-year extension starting Sept 1, with the option for another one-year extension, from the Finance Ministry to continue operating the NSW.
BIMB Research said while the NSW continues to anchor Dnex’s IT segment, contributing around 74%, and 8% to the group’s topline, the company is pivoting toward higher-value, next-generation projects.
These include the Malaysia Maritime Single Window, iGFMAS, and sovereign cloud project, a landmark partnership with Google Cloud and Gamuda Bhd under a 50:50 joint venture.
These initiatives are expected to collectively enhance recurring revenue for the IT segment, which now contributes roughly 14% of the group’s overall revenue.
BIMB Research kept its “buy” call on the stock with a target price of 33 sen a share.
The NSW is a one-stop digital platform that links businesses with government agencies, banks, and logistics partners through a single system.
It supports over 45,000 users, handles more than 100 million transactions every year, and connects to 36 agencies, 16 banks, and 167 Customs stations nationwide.
Under the renewed contract, Dnex will continue providing its six key services, eDeclare, eManifest, ePCO, ePermit, ePermitSTA, and ePayment, which enable smooth, secure, and efficient trade operations.
This is the sixth consecutive extension to operate the NSW platform, cementing Dnex’s reputation as one of the digital gatekeepers for Malaysia’s trade infrastructure.
This marks over 16 years of uninterrupted stewardship, with exclusivity remaining firmly with Dnex since the platform’s inception.
NSW charges reportedly remain unchanged at 75 sen per kilobyte for government users and 80 sen per kilobyte for private-sector users, along with RM5 per successful permit or certificate of origin application, consistent with previous terms and reaffirming the annuity-like nature of this income stream.
Dnex’s shares closed at 24.5 sen in yesterday’s trading.