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.
Created by Gerard Lam | Jan 06, 2022
Created by Gerard Lam | Jan 05, 2022
Created by Gerard Lam | Jul 24, 2021