KUALA LUMPUR (July 12): CGSCIMB Research has upgraded Dagang NeXchange Bhd (DNex) to “Hold” at 29 sen with a higher target price of 30 sen (from 23 sen) and said it is surprised to learn that DNeX is optimistic of a potential National Single Window (NSW) concession extension in 2H19 due to delays in uCustoms implementation.
In a note July 11, the research house said DNeX also plans to divest its entire stake in Ping Petroleum, following which shareholders could potentially be rewarded with a special dividend.
“We raise our FY19-21F EPS by 5-21% on higher contributions from IT services with the potential NSW concession extension. In addition, we were encouraged to learn that its portable container system (PCS) project installation is gaining traction.
“It has installed 12 PCS solutions in 1H19 and targets an additional 25 units to be installed in 2H19.
“Raise FY19-21F EPS by 5-21%. Upgrade to Hold with a higher 30 sen target price,” it said.