GLam
Is DNeX undervalued? - Perspective from a proprietary investor
DNeX's main business units comprise of:
i. SilTerra
ii. Ping Petroleum
iii. Trade facilitation ("National Single Window")
iv. Subsea Cable installation
In its recently announced quarterly financial results, core PATAMI was recorded at RM41.3mil.
Based on that core PATAMI, SilTerra's PATAMI contribution was only 2 months (RM21mil). This was due to the acquisition being completed in July 2021.
During that period, average ASP for Wafer per mask layers were USD20.8. Based on channel checks, Wafer per mask layers ASP had increased by 25% and is expected to continue to surge going into 2022.
Based on 25% increase in ASP, SilTerra is expected to record RM39mil - RM40mil in core PATAMI for Q222.
Assuming profitability of Ping Petroleum and other businesses remains constant (Although it is expected to rise), DNeX is expected to record a profit of RM59mil - RM60mil in Q222 (3 months).
Using a blended PE of 25 (Technology + Oil and gas sector), DNeX's value should be RM1.87 (Based on annualised profit of RM236mil)
Using a blended PE of 30 (Technology + Oil and gas sector), factoring in recovery of crude price, DNeX's value should be RM2.25 (Based on annualised profit of RM236mil)
At current price of RM0.845, DNeX is significantly undervalued.
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Discussions
1 person likes this. Showing 7 of 7 comments
@Gerrard
Your blog title and your last sentence doesn't jive.
Great companies are built with solid foundation of core biz.
Have you seen a forbes 500 company with 4 different types of biz?
That's your answer.
Take a good look at the top 10 largest company in the world and compare with Dnex.
2022-01-05 11:19
the petroleum business is fishy. pump in so much money but little profit despite high oil price. IT business contibution is negligible. siltera profit is small and not proven, local leadership ie ceo is crucial, those foreigner director mainly on technical advice amd hoping to buy cheap. share base is hugely diluted...these are reasons why still a penny stock.
2022-01-05 22:30
most important is the captain. proton saga mentality wont change just like his master old hourse never change day day talking about cina, cina, cina for past 30years...if the captain change to bosses like inari or greatech...at least share price rm5 by now.
2022-01-06 07:59
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