DNeX - Further legs to run

Gerard Lam
Publish date: Mon, 10 Jan 2022, 12:57 PM

After a week of surge, DNeX's share price began to test its resistance at RM0.89. Facing this price resistance, the price began to consolidate at a RM0.86 - RM0.87.

With DNeX poisted to announce Q2FY22 by middle to end of Febuary, it is projected to announce higher earnings due to:

i. Increase in SilTerra's ASP of Wafer per Mask Layer by 25% since Q2 FY21 and Wafer Fabout performance due to significantly lesser wastage

ii. Increase in crude oil prices lifting offtake value of Ping Petroleum

iii. Recognition of NSW revenue

The effects of which are projected to be a PATMI of RM59mil.

Based on annualised PER of 25x (Blended technology and energy), the fair value of DNeX is RM1.87

Based on annualised PER of 30x (Blended technology and energy, factoring in positive sentiment), the fair value of DNeX is RM2.25

Note that further catalyst that can boost the price to even higher levels include:

i. Deal with Foxconn on major expansion of Kulim plant for another foundry using MEMS, GaN and SiPhi for Electric Vehicles chips

ii. Deal to acquire MIMOS' 5k 8 inch foundry

Benchmarking SilTerra with peers under the GaN, MEMS and SiPhi technology, its value is significantly undervalued with peers currently being valued at 4x higher than SilTerra's current composition to DNeX.

Premised on the above, DNeX share price certainly has has further legs to run.

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3 people like this. Showing 3 of 3 comments



2022-01-11 09:40


a lot of promises, but will it come true?

2022-01-11 11:10


FOXCONN is selling off its China assets.
Hope its good news for DNEX.......
Up, up, up and away...

2022-01-12 14:11

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