We view the recent sell off of Dagang Nexchange ("DNeX") share unwarranted, given the ability of its 5 year LTA with China and Taiwan Display Driver IC fabless companies Chipone Technology and Ilitek to cushion the impact of any potential decline in IC demand.

Note that the LTA makes up of 70% of SilTerra's current wafer capacity and guarantees a load or pay, thus SilTerra will benefit regardless of whether the economy falls into a recession in the 1H23.

Separately, Nordic Semiconductor (key Bluetooth supplier of tech giant A), the world's leading Bluetooth wireless IC drive has locked SilTerra's loading for next 1H23 (In line with the expansion of SilTerra's 20% additional capacity).

While shares in global chip giants falter, SilTerra remains in a good position by virtue of it being the a handful of 200mm fab in the world having the capabilities to fabricate Silicon Photonics and MEMS IC (with various patents) having invested years in R&D with IMEC.

ASP for 200mm remains elevated due to shortage for automobile and data centre IC chips, two areas of focus for SilTerra's near future loading.

As for Ping Petroleum, oil prices remains elevated and undersupplied, despite prices falling from US$100 highs, Ping Petroleum's average actual cost per barrel is only US$25/bbl. At current prices of US$87/bbl, Ping is still able to make significant profits.

Under the guidanceship of Tan Sri Syed Zainal Abidin Tahir, DNeX is able to weather the potential economic downturn and continue to record profits due to the LTA.

We believe that the market has underappreciated the positive impact of the LTA signed by DNeX and will be positively surprised when DNeX's quarter earnings is announced.