A)Group Corporate Structure

1)The subscription in Subcription share in Ping had been completed by DNex Petroleum Snd Bhd on 30th June 2016.

2)DNex Petroleum currently holds 30% equity interest in Ping

B)Profile of Directors

Chairman-Tan Sri Abd Rahman Mamat (Date of Appointment : 12th Dec 2013)

1)Previously Secretary-General of the Ministry of International Trade and Indsutry  (MITI) since Sept 2006

2)Special Assistant to Minister of International Trade and Industry, Tan Sri Rafidah Binti Abdul Aziz

ii)Group Managing Director

Group Managing Director - Zainal Abidin Abd Jalil (Date of Appointment : 19th June 2014)

1)He has demonstrated significant leadership experience in deep water operations including floating production,

    storage and offloading units (FPSOs) and sub-sea wells and joint venture management with strong partner relation

    with global players in oil and gas sector. 

2)Serving as Chief Executive of Malakoff Corporation Berhad, he successfully superheaded the company's

   transformation into leading International Independent Water and power producer (IWPP) with core business in

    power generation, water desalination operation and maintenance services.

3)Prior to Malakoff, he had long career at ExxonMobil spanning 28 years in various manager and leadership capcities.

iii)Executive Director

Executive Director - Dato' Wong Kam Yin (Date of Appointment : 12th Dec 2013)

1)He started his career with Authur Anderson Tax Services, an international Accounting frim.

2)In 2002, he become Technopreneur and eventually via a merger, got his company to be part be of main Market-listed

   Censof Holding berhad.

A Big puzzle : What the hell to do with Director Profile introduction

The Answers are

1)The Chairman is a POWERFUL man

2)They are new management team and appointed since Dec 2013 or later

3)The Company turn around tremendously since 2014, the results shown as below. 

C)Company Performance 

i)Overall Performance 

Note : Year 2012 and 2011 is neglected since the management changed effective fr Dec 2013. 

1)Net Income tremendously, from loss to big profit, 7910% even the revenue ony increase  12%.

   The major increase due to profit obtain from associate - Ping

2)Long & short term borrowing is zero increases, especially long term debt almost zero which is not  seen major

    O&G company.

3)Equity increases 36% from 2013 to 2015

Do you able to find any O&G counter with low long term debt, 1.5mil?

If Yes, Please let me know!

4)Q2 16 Balance Sheet (Latest)

From the Q2 16 Balance Sheet

1)There is 127 mil invested in associate (zero in Q1 16)

2)Long term debt is zero

ii)Return of Invested Capital

Wow, the ROIC in year 2014 and 2015 is 22% and 25% respectively 

iii)Cash Flow

The CROIC for year 2014 and 2015 is 45.8% and 4.7% respectively.

iv)TTM data (After Q2 16 Results)

 The PE (2.9, extreme low a fast growth company) and EV/EBIT is less than 10 and 8 respectively, this mean the

   current share price is still  fairvalue.

V)Data from ISAHAM

From the above data, the PE and EV/EBITA for DNex is 2.9 and 8.3,  is much lower if compare to average sector PE and

EV/EBITA ,  16.6 and 9.6 respectively . Hence the share price stil have a BIG room to move up.

Do you able to find any O&G counter with such low PE, 2.9?

If Yes, Please let me know!

Vi)Q2 Performance Analysis

The major increase in profit before tax was mainly contributed by the Group 30% owned associate company - Ping

which can be seen in below table (highlited in green colour). The Energy sector increases tremendously from negative to 81mil.

D)Prospect for 2016

1)The completion of Ping subscription had resulted a significant improvement in Group Net Assets Value

2)OGPC Group acquisition of which was completed on 3rd Aug 2016 will further enhance DNex's shareholder value for the

  Financial ending 31st Dec2016

3)The Group expects to deliver positive result for the year 2016.

Disclaimer :

This is not a buy or sell call, the purpose of this article is just for the information sharing