DNEX (4456)-Main Market, Technology-Digital Services

We believe the worst could be over for SilTerra and expect DNEX’s technology segment to record a gradual recovery towards profitability, premised on (i) increasing wafer shipments and ASP, and (ii) continued optimisation of operational costs. Meanwhile, we project Ping's performance to remain resilient, supported by elevated Brent oil price at the range of USD80-90 per barrel throughout 2024 (vs 2023’s average USD 90.5). Noteworthy catalysts to monitor include the potential contributions from Abu Cluster and Meranti Cluster. Both assets, with ownership stakes of 100% and 60%, respectively, are projected to achieve their first oil production by the end of FY24.

Grossly oversold accompanied by bullish hammer pattern alongside and on the mend indicators . A breakout above 0.35 will spur the price toward RM0.39-0.40 region.

✅Current price: RM0.34

✅Entry: RM0.31-0.33-0.34

✅Resistance: RM0.35-0.39-0.42

✅Cut loss: RM0.295

✅Risk profile: High

Source: Hong Leong Investment Bank Research - 13 Feb 2024