To those who panic, ask yourself:
Question 1: Why is DNex price supported at RM0.55? Can retailers support DNex price so strongly?
Simple answer: Only institution can support DNex with such amount of money
I am sure that there is a high likelihood that EPF will emerge as substantial shareholder in DNex. EPF already has around 2% of DNex based on last Annual Report.
Question 2: Why does it make sense for local institution to buy DNex?
Silterra must be controlled by Malaysian at all times (Otherwise, the business direction of Silterra is at risk). This makes EPF more likely to mop up DNex shares as they must at all times control 50.01% of DNex.
Question 3: Is DNex overvalued? Since Silterra is currently loss making
DNex + China CGP has laid out the plan to turnaround Silterra to make it a unicorn tech company by 2025 with a value of US$1.5bil (RM6bil)
How much of this value is factored into DNex now?
Current DNex value = RM1.1bil
Discounted present value of Silterra = RM7bil (RM6bil in 2025)
Value of Silterra to DNex (60% of RM7bil) = RM4.2bil
DNex share price has only factored in around 20% of Silterra future value.
Look at Greatec, it has factored in more than 100% of its future value.
Silterra is the only Malaysian frontend chip maker. Chip shortage only directly benefits Silterra.
All other Malaysian tech companies like Greatech, Inari, Unisem, etc are all backend chip maker support services companies.
Silterra = Topglove, Supermax
Greatec, Inari, Unisem = HLT, Esceram
Created by Gerard Lam | Jan 06, 2022
Created by Gerard Lam | Jan 05, 2022
Created by Gerard Lam | Jul 24, 2021