Highlights
KLSE: DNEX (4456)       DAGANG NEXCHANGE BHD MAIN : Technology
Last Price Today's Change   Day's Range   Trading Volume
0.77   -0.005 (0.65%)  0.76 - 0.775  59,957,100
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IPO Info

Key Data:
General Retail Institutional
Offer Period
Opening - - -
Closing - - -
Price
Issue Price - - -
Par Value 0.000 - -
Units - - -
No of Shares
Public Issue - - -
Offer for Sale - - -
Private Placement - - -
Time Table
Allotment Date - - -
Listing Date - - -
Issuing House - - -
ISIN Code - - -
Prospectus:
RENOUNCEABLE RIGHTS ISSUE OF 465,146,809 NEW ORDINARY SHARES OF RM0.20 EACH IN DAGANG NeXCHANGE BERHAD ("DNeX" OR THE "COMPANY") ("SHARE(S)" OR "DNeX SHARE(S)") ("RIGHTS SHARE(S)") TOGETHER WITH 465,146,809 NEW FREE DETACHABLE WARRANTS ("WARRANT(S)") AT AN ISSUE PRICE OF RM0.21 PER RIGHTS SHARE ON THE BASIS OF THREE (3) RIGHTS SHARES TOGETHER WITH THREE (3) WARRANTS FOR EVERY FIVE (5) EXISTING DNeX SHARES HELD AS AT 5.00 P.M. ON 30 JUNE 2016
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  41 people like this.
 
strattegist tunggu tunggu hey
23/07/2021 1:44 PM
cikminah7777 This is a long term investment for me. No need to cry becase the stock does not goreng. If you want a goreng stock, don't come here. Go to Hightec, Widetec or Gentec.. As simple as that.
23/07/2021 3:20 PM
derrickinvestor Minahtec ada ?
23/07/2021 3:38 PM
KingDavid Based on my estimation, almost all 695 million WD has been converted or to be converted in the next week or 2, to mother share resulting in additional funds of more than 340+ million. The share price is in consolidation likely because of some of these convection are for short term sales for profit.
23/07/2021 3:50 PM
Gerard Lam Due to many misinformation spread by less competent individuals above, there are a few facts to clarify:

1. Stock is heavy, thus price hard to rise - Outstanding WD not converted is 215mil WD's. Assuming all 215mil WD are converted by end of the month, the total share base of DNeX will be ~3.1bil shares.

2. Who are the sellers? - Based on CGS-CIMB report on fund flow, DNeX's recent share price rise in this week was due to proprietary buying. Proprietary buyers are funds that buy (not on behalf of investors), but direct buyers to earn gains for themself/the firm. These are mainly large investment banks

3. Net buyers for last 2 weeks and one month - institution and proprietary funds were net buyers while retailers were net sellers.

4. Assuming DNeX earns RM200mil for FY21 (RM80mil Silterra, RM70mil Ping, RM50mil Others), at conservative PE of 20x, DNeX is worth RM1.29. At peak valuation PE of 60x, DNeX is worth RM3.88

This explains why institution and proprietary funds kept mopping up DNeX shares from retailers.
23/07/2021 4:05 PM
nextan Mahu naik bukan mainya susah,
Mahu lembik kejap saja ,
Amoi pun tak2 mahula ni macam punya
23/07/2021 4:31 PM
farisfx54 BiG TQ to MR Gerard Lam 4 thee valuable info/posting.
23/07/2021 4:35 PM
TedTock This shows how retailers like to sabotage themselves while funds continue to get richer
23/07/2021 4:59 PM
Jonathan Keung Three different category of buyers. Day traders who flip , buyers who hold for short term and buyers who buy for future long term. Everybody has their own views
23/07/2021 5:27 PM
JJFinn Gerard Lam : Thank for the info
23/07/2021 5:28 PM
strattegist tutup melah melah hey
23/07/2021 5:49 PM
strattegist tulun sikit hey
23/07/2021 5:49 PM
strattegist kasik relax relax hey
23/07/2021 5:50 PM
strattegist weekend sulah mali hey
23/07/2021 5:50 PM
derrickinvestor Macam mana mau relax? Strategist x kasi pump ini counter…lol
23/07/2021 6:03 PM
KingDavid Gerard Lam, you are very knowledgeable on Silterra especially on their bright future. Thank you for your contribution. By the end of the year, what is your projected DNeX's share price ?
23/07/2021 7:22 PM
farisfx54 KingDavid must also Thank You 4 yourposting ,information N contribution 0n Dnex n on this post.
23/07/2021 9:00 PM
NatsukoMishima Pls dont regret if the price jump to rm 30 !!
23/07/2021 9:03 PM
Slc1 U sure or not RM30? I'm still holding.
23/07/2021 9:06 PM
nextan Sure, but don't in what year if you still can wait
23/07/2021 9:18 PM
AllanTingAS RM30!!!! For me RM3 already miracle and will sell all.
23/07/2021 9:29 PM
atilanohun why not 300 ? I m not satisfied !! Fxxx Dnex !
23/07/2021 9:56 PM
derrickinvestor rm30... i think my door step sure visit by god of wealth then
23/07/2021 10:37 PM
Jonathan Keung Without disrespect to any sifu .if Dnex can reach 1.50 by end of this month. Many smiling & happy supporter's
23/07/2021 10:41 PM
LossAversion Touch RM1 pun cukuplah....for time being
23/07/2021 10:43 PM
Edwardong53 Those who bought the warrants at < 25 sen and now converting to mother shares would be selling the mother shares when the price touches > 80 sen;
24/07/2021 12:06 AM
Willieyong Rm1? Wait until next year maybe got chance
24/07/2021 12:42 AM
vllyk https://www.thestar.com.my/tech/tech-news/2021/07/22/one-of-worlds-largest-chipmakers-worries-industry-will-make-too-many-semiconductors

Saw this news and hope Dnex will have the time enough to turn the Silterra company around before the market peaks on supply and price.
24/07/2021 1:22 AM
Trevor777 Past 2 additional listings of Warrants converts of 45 and 30 millions shares have lesser impacts on the mother's price, signifying these shares are well absorbed by the daily traded volume of only 59 and 58 millions respectively.....they didn't go to market.

Insofar, out of the Issued Warrants of 695,396,809 of which 496,213,821 had been additional listed, giving a balance of 199,182,988 unconverted and outstanding. Nosh has been brought up to 2,884,642,148
24/07/2021 7:40 AM
TedTock Sounds like TI is having inhouse problems and are trying to project their issues outwards
24/07/2021 7:42 AM
Underhand When is sale of warrant-converted share Wil end? Any one?
24/07/2021 9:39 AM
Underhand Need your precious guidances. Thanks
24/07/2021 9:41 AM
Trevor777 Never ending, my friend. Once the Warrants are converted into mother shares, they rank pari passu with the listed Dnex shares.
24/07/2021 9:48 AM
Bgt 9963 Good morning.!
24/07/2021 10:19 AM
TpeeZack I am selling all my shares in this counter next week.
24/07/2021 11:22 AM
nextan Ok very good than see you again at 1.20
24/07/2021 11:34 AM
Trevor777 Funny little kid,... do you need our approval to "sell all your shares at this counter next week"?
24/07/2021 11:40 AM
Trevor777 Firstly, Tan Sri Dato Syed Zainal had in March-April, 2021 revealed that the easier and faster course to raise funds is by PP, which he had complete the application and approval for 800 millions PP at his call. He had said at Press Conf and also in between sips of coffee, that RI + Warrants would sap more liquidity from shareholders, whom he has concern for.

Secondly, PING acquisition was without a single sen from Dnex's Bank accounts.

With the Warrants conversion fees and the Cash at Bank, Dnex has more than doubly covered Silterra's purchase price in Cash.

To say that Dnex will propose RI + Warrants is to spread rumors and blatantly discredit Dnex's financial position. Moreover, writer has no respect for the BOD and also no awareness of market sentiments.

P/S Not a Buy or Sell call, trade at your own Risks.
24/07/2021 11:40 AM
klse99 Monday, the price might slightly drop to 0.74(+-);
According to the trend, if the price drop later 0.73, it will comes another dropping until it reach 0.68(+-);
But, if the price on Monday drop only to 0.755~0.745, it will comes a small bounce up to a price won't more than the current, 0.775(+-).

Around 3% profit only...not really recommend for newbies and long-term investors
24/07/2021 11:46 AM
OngKawKaw YOU SO PRO. UP OR DOWN PUN BOLEH PREDICK
24/07/2021 1:18 PM
Maridien2 This kind of company where to find? Foxconn bought at 0.90, Ping bought at 0.80. Now u can buy below 0.80. Maybe u should sell your house, borrow ah long all in for the deal of the century.
24/07/2021 1:43 PM
Trevor777 Current price levels may not always determine Future prices.
24/07/2021 2:06 PM
OngKawKaw STOCK INI NOT FOR POOR PEOPLE ONE. TURUN SIKIT CRY FATHER CRY MOTHER TAK MAU BELI LAH!!!
24/07/2021 2:07 PM
Gerard Lam Based on SMIC's quarter 1 results will show that SMIC's 200mm wafer fab revenue increase by ~29% from Q420 to Q121 (almost entire increase due to increase in ASP instead of capacity, as SMIC's capacity has maxed out at 98% based on the disclosure). Note that SMIC's revenue are entirely 200mm wafer

Back to Silterra, at 64% capacity for 2020, Silterra achieved RM568mil revenue for 2020.

A simple back on the envelope calculation:
RM568mil / 64% x 92% (Current Silterra capacity) = RM816.5mil

Assuming 75% of Silterra's 200mm wafers had 20% ASP increase (conservative compared to SMIC):
(RM816.5mil x 75% x 1.2) + (RM816.5 x 25% x 1.0)
= RM939mil (Silterra 2021 conservative revenue)

How about profitability?
Note that Silterra is and has been EBITDA positive, which means that they are generating positive cash flows.
So why Profit after tax is negative? This is due to RM100mil depreciation per year.
However, after Silterra is acquired by DNeX, the useful lives of the assets of RM100mil book value will be re-measured (as machines for 200mm wafer fab have increased useful lives due to current market shortage)

Thus, depreciation will fall to RM10mil per year (based on RM100mil book value of assets)

Based on reduced depreciation, ASP and capacity increase, Silterra can easily turn the 2020's loss of RM64mil into profit of more than RM300mil from:

- Revenue increase by more than RM350mil
- Depreciation fall by more than RM80mil

In conclusion, Silterra's simple and conservative back of envelope calculation shows it could easily make RM150mil - RM250mil profit after tax this year.

Based on DNeX's 60% stake in Silterra, at 60x PE (Semiconductor), Silterra's value alone to DNeX is RM2.32

RM200mil (PAT) / 3.1bil shares (fully diluted) = RM0.039 (EPS)

60 PE x RM0.039 (EPS) = RM2.32

This is only current year earnings, not including Silterra's future growth prospects in MEMS and Silicon Photonics in Electric vehicles and Data centres.

This is the reason foreign investment banks and proprietary investment funds have been buying so confidently from retailers.
24/07/2021 2:27 PM
Trevor777 Gerard,...thanks for sharing the profitability comparison.

May we know Silterra's Q121 with Q420 and as compared to SMIC's? Is there any significant changes in Silterra against industry's figures?
24/07/2021 2:47 PM
Trevor777 To make further projections, someone could also list the income from PING's Q420, Q121 to let us gloat on better Oil prices viz higher shareholdings of 3 folds by Dnex!!!!.... Party's just begun.
24/07/2021 2:51 PM
KingDavid Gerard Lam, Thanks for details sharing of Silterra's current, future with projected prospects. In mid to long term, DNeX is going to perform well with all 4 cylinders generating power into 2022 and beyond.
24/07/2021 2:58 PM
Trevor777 To add to Gerard's working on the EPS, Dnex may see her NOSH in the region of 3.6B to 3.8B (Part/all Warrants and PP inclusive)

Having said that, this EPS is typically based on Silterra's earnings alone and with the other 3 sources and pillars of income, EPS oght to be much higher at end 2021. Therefore, at the conservative PE 50x would give a higher Fair market price.

Anyone care to add or correct, please do not hesitate.
24/07/2021 3:12 PM
jlex11 GeraldLam @ very factual and comprehensive analysis on your end.Thanks a lot.

1. You may wish to check the depreciation charge which should be RM51.6M in 2019 & RM56.0M for 2020. In addition , the amortisation of the Intangible Assets of the company is also very aggressive.

2. Any comment on the high staff costs (RM126M for 2020 & RM 119M for 2019) & Other Operating Expenses (RM182M for 2020 & RM 189M for 2019).Any room for reduction which will improve the bottom line .

Cheers & stay safe...
24/07/2021 3:31 PM
Psng1215 Stil pending announcement for the completion of Acquisition on silterra. Why?
24/07/2021 3:44 PM


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