Fret not for Malaysia’s rubber glove sector ‘still has legs to run’
==================================================

SENTIMENT towards the glove sector has doubtlessly changed – as evident on the stock price regression of the Big Four glove counters – given the rapid development on the COVID-19 vaccine scene.

Some investors have increasingly shifted their focus to recovery beneficiaries which has led share price correction of glove stocks across the board on Bursa Malaysia.

On the other hand, most glove companies expect 2021 to be a stronger year for them due to higher volume as a result of their production expansion coupled with higher average selling prices (ASPs) compared to 2020.

Some players expect sequential quarter ASP growth to continue into 3Q CY2020. While this is possible, MIDF Research opined that the rise will be at a smaller quantum due to the high-base effect.

https://focusmalaysia.my/markets/fret-not-for-malaysias-rubber-glove-sector-still-has-legs-to-run/

LATEST NEWS ON GLOVES-

GLOVE prices remain ROBUST amid supply SHORTAGE- The STAR
=========================================
CORPORATE NEWS
Friday, 19 Feb 2021


“Other than the shortage in nitrile rubber gloves, the industry is also facing a labour shortage due to the closure of international borders, ” the research arm of MIDF Amanah Investment Bank Bhd said in a note yesterday.

The average selling price (ASP) of rubber gloves is expected to remain robust in the next one-and-a-half to two years, since industry players are projecting a shortage in nitrile gloves that could possibly last until 2023 due to the shortage in raw material supply, MIDF Research said.

“Industry players are expanding at a faster pace to keep up with demand, but it is not done without challenges.

It noted that the established glove players expect to further automate their processes in order to reduce the number of workers per million pieces.

Golden opportunity to top up or accumulate some more of the Super Silterra Gems - those who missed the boat earlier- don't complain just collect ya.

Later the show will resume with a BANG !.

Huat Arrrr.

@GLam- Interesting article.

Based on Beijing CGP Investment Co Ltd's revenue and profit target for Silterra, Silterra's value to DNex alone is worth more than RM2.70

https://www.nst.com.my/business/2020/12/647663/dnex-chinese-partner-ou...

Beijing CGP Investment Co Ltd's revenue and profit target for DNex are:

Target value: US$1.5bil (RM6bil)

Revenue: US$350mil (RM1.4bil)

Profit: US$75mil (RM300mil)

Based on most semiconductor stock valuation now at 30x PER, Silterra's value to DNex ALONE is potentially worth RM2.70, being;

30x RM300mil profit / 1.998bil shares (60% share of Dnex in Silterra) = RM2.70/share

@t4771ony - its Redeemable Convertible Preference Shares


Posted by tony4771 > Feb 18, 2021 6:10 PM | Report Abuse

what is rps? @goldberg. tks.

Interesting Article
------------------
Two factors which could push DNEX higher - felicity

Purchase price and manner the payment is made to the 60% of owners of Ping Petroleum. DNEX is buying Ping and one portion is paid by cash, another via shares.

The payment in shares as above is based on the share price 5-day VWAP of DNEX shares 2 business days before completion date. The exercise is yet to be completed, and the higher the share price, the lower the payment of shares is to be made to the sellers. In fact, if it exceeds certain share price, DNEX need not pay in RPS. Seems like at the moment given the share price, it need not issue RPS to the sellers.

Reason no 2.

DNEX still needs cash although they have raised some substantial private placement funds (don't know to who) at very cheap price of 30 sen and below.

DNEX WD's exercise price is at 50 sen and for warrant holders to exercise, it needs to be substantially above 50 sen. I would not exercise if the price is trading at 52 sen, if you know what I mean. Why take the risk.

BTW, the maturity date for the DNEX WD is 30 Jul 2021. Few months to go.
Well, I still use the word "could" as anything can happen. Shares can crash. DNEX may find other ways to raise more cash. Ping Petroleum's exercise may not go through. Silterra's deal may not happen. For example.

Around 26.7 million shares done at 77sen. Cleared all sellers. Big show tomorrow.

Congrats Folks

Any closing price above 70 sen great coz tomorrow - because chances are, Dnex will not be a penny stock tomorrow. This will attract more Funds.
Enjoy the rise folks.
Huat Arrrr.

SilTerra - The Tech Giant in the making- Born in Malaysia- run by China.

Buy and HOLD- this is a multi bagger in the making - TP of at least RM2.80 by year end.

Oil , Silterra Chips & Beijing CBP JV consortium- will be the main catalyst.

At this turbocharged power & speed , DNext should reach the upper limitr of 85 sen later today.

Huat Arrr.

SilTerras Future Is Looking Good, However A Definitive Agreement is Still Vital To Attract Chinese Funds.
-------------------------------------------------------
It is understood that the successful bidder DNeX and Beijing Shengshi Investment also plan to set up companies in Malaysia in the future to help Malaysia develop its own semiconductor ecosystem and design and manufacture products locally to sell to the international market including China.

The joint venture company DNeX accounted for about 60%, and Beijing Shengshi’s investment accounted for about 40%. The dominant power is still in the hands of local Malaysian companies. Because of this part of the relationship, it has won favor

Lets hope the Agreement is Signed , Sealed & Delivered soon.

interesting article on Dnex

https://klse.i3investor.com/blogs/GLam/2021-02-17-story-h1541137281-Should_you_sell_DNex.jsp

GLOVES- STILL THE BEST SECTOR- Demand to exceed Supply for at least 2 years
---------------------------------------------------------------------------------------
ALTHOUGH the tide may seem to have turned against glove counters in recent times with the advent of vaccination, there is still much exuberance left in the sector.

For the foreseeable future, the research house opined that glove demand and their average selling prices (ASPs) will be driven by testing frequency and vaccine roll-out using gloves.

“For the remainder of CY2021, we expect the vaccination demand for gloves to more than offset the decline from testing demand,”

“Even with global supply expected to rise by circa 20%, we expect a supply shortage of circa 12.4 billion pieces in CY2021.”

Gloves are currently being used by most countries when administrating vaccines, notably those with high population as well as among first world nations.

With global vaccine roll-out only beginning to take shape, the research house expects glove ASPs to remain elevated (at around US$115-140 per thousand pieces) for the time being with a possible decline in 4Q CY2021 at the earliest.

Even as the US expects to reach herd immunity by 4Q CY2021 with full vaccination by 1Q CY2022, current estimates indicate global herd immunity could take as long as five years to materialise.

This would provide support for glove demand in the medium-term.

Moreover, concerns over the efficacy level of existing batches of vaccine against newer strain variants as well as the anti-vax movement whereby 31% of US citizens were reported to be not keen of getting vaccinated.

In fact, the latest developments prompted the research house to switch its valuation methodology from straight price-to-earnings (PE) multiple to a modified discounted cash flow (DCF) valuation.

“We value the glove companies using with their pre-pandemic five-year average PE multiple of (CY2015-2019) based on sustainable earnings in a post-super normal earnings environment summed with free cash flows (both discounted back to present value) generated during the boom period,”

“This encompasses earnings in a post-pandemic era as well as high profits generated during the pandemic.”

It’s not game over for GLOVEs. Vaccination isn’t a threat!

And COVID will be with.us for a very long time.

The IBs , Jp Morgan and all the so called experts just REFUSE to accept this fact.

Why ?

Answer is simple - To manipulate he GLOVES stock - to collect at basement prices.

Some manipulate to issue Call Warrants and some manipulate to SHORT the Glove stocks.

Yes they are very cunning - they can even put a Fox to shame.

Today Ah Thai SBB- Good news coming ?

Very insightful and well presented. Thanks Ben !

The EPS of Harta ( RM12.50) is LOWER than Supermax ( RM6-08)- but the Market price of Supermax is 50% lower than Harta- Strange ya.

What does this say? Is Supermax super undervalued?

Supermax has massive upside potential as it has much brighter long term prospects in terms of better business model (OBM & ODN) and its massive plans to corner the LUCRATIVE markets in USA, UK & Canada by building mega factories there.

JP Morgan & Cohorts are fully aware of this - they are slowly accumulating. They believe that COVID will be with us for a very long time and GLOVES will always be in great demand - going forward.

They know that Supermax is easily worth more than Rm10.

The naysayers are employed by them just to spook and create panic- how pathetic.

The favourable sentiment towards Gloves will return. The market just cannot ignore this sector- the most profitable sector and most undervalued. In the meantime we have to live with the pesky naysayers. As long as they are here - the sector will flourish. They are here to collect at super low prices - they are not psychotic people but cunning. They truly believe in GLOVES.

Dnex need to pull back before continuing its uptrend. The large band of contra traders need to be weeded out first. Accumulate on weakness.

SUPERMAX THE MOST UNDERVALUED GEM IN BURSA
--------------------------------------------------------
For year 2021, the estimated ASP for Supermax is USD80, cost per 1000 pieces is USD20, thus the PAT is (26b/1000) x 60 x 4 x 0.76 = RM4.74b. Thus, EPS is 4.74/2.72 = RM1.74.

With about 30% DPR, its dividend 2021 will be around RM0.52. For 2022, the estimated PAT (ASP = USD50, production = 48b, cost = USD 20 per 1000 pieces) is 30 x 0.048 x 4 x 0.76 = Rm4.38b.

EPS is RM1.61 and Dividend (30% DPR) is RM0.48. For 2023, the estimated PAT (ASP = USD35, production = 48b, cost = USD 20 per 1000 pieces) is 15 x 0.048 x 4 x 0.76 = Rm2.18b.

EPS is RM0.8 and Dividend (30% DPR) is RM0.24. With the average PE since IPO, PE15, we will get TP RM12 at 2023. The current share price is RM6.24. Thus, our modal is 6.24 - 1.24 = RM5.

Then, our earning percentage in 3 years is 140%. The annual earning is about 47%. Do remember, I do not have the production figure in 2023 and it may increase another 30% to fulfill the global organic growth of glove demands.

Another thing is the ASP may be higher than USD 35, which may flow USD 40 -45 since Supermax's business model will have higher earning.

In conclusion, where can we get these type of guaranteed earn share investment?

PING OIL & SILTERRA CHIPS to BOOST DNEX FURTHER- ACCUMULATE

1- DNeX had recently acquired an additional 60 per cent of the issued share capital in Ping Petroleum for US$78 million as the group aims to strengthen presence in the upstream O&G segment.

2-Dnex's won a bid to acquire SilTerra together with consortium partner Beijing CGP Investment Co Ltd could also uplift the company's prospect of becoming a leader in semiconductor.

There is a global shortage of chip, mainly for electronic component in mobile and ELECTRIC VEHICLES. The semiconductor is currently the beneficiary from the pandemic.

Brent Crude Price is Surging - Crude is expected to stabilise at US80 per barrel.
Ping Oil's production cost in the North Sea is only US20 per barrel.

Some of the RM25 B may flow to emerging stocks like Dnex.


Posted by nicholas99 > Feb 15, 2021 7:57 PM | Report Abuse

Giving I-sinar really taken a toll on EPF. I would say.

EPF approves 3.2m i-Sinar applications worth RM25b <--- only first phase.

Khazanah accepts DNeX bid for Silterra
=============================
CORPORATE NEWS
Tuesday, 09 Feb 2021

KUALA LUMPUR: Khazanah Nasional Bhd has accepted the bid by Dagang Nexchange Bhd (DNeX) to acquire the entire stake of its loss-making wafer foundry Silterra Sdn Bhd but the question remains is the price tag.

In a statement to Bursa Malaysia, DNeX said the national sovereign wealth fund had accepted the bid last Friday.

No need to create fear. The Govt will make sure that a local bumi controlled company gets SilTerra.

Now its up to DNEX to accept the deal or not.

Posted by kancil850 > Feb 15, 2021 6:59 PM | Report Abuse

i3lurker, Im confused reading news title. from the star it says kazanah has accepted silterra bid. This can mean either just confirmation of bid acceptance, or accept the offer as winner. Whereas the edge outright declare dnex as winner. Is this example of shark at play like u mentioned?

https://www.thestar.com.my/business/business-news/2021/02/08/khazanah-...

https://www.theedgemarkets.com/article/dnexled-consortium-wins-bid-kha...

Posted by i3lurker > Feb 15, 2021 6:14 PM | Report Abuse

if nothing happens it should go up.
our Sharks however are very very naughty naughty and way too naughty,

just a general statement from Khazanah that all bids and Foxconn bid is being considered will be enough to push price down back to 34 sen.
Thats for you to buy cash.
Those contra payment due will sell at huge losses

buy cash and ship will sail a million miles

Dnex price NEED to be pushed to around Rm0.80 to raise the MUCH NEEDED FUNDSs to finance acquisitions ( Silterra & Ping Petroleum) -via the exercise of Warrants- WD. that will be expiring in July 2021.

The Warrant conversion will raise RM355.7mil

The faster they push , the faster Dnex can collect the conversion proceeds.

200mm Demand Surges- The Chip that SlTerra Produces
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A surge in demand for various chips is causing shortages for select 200mm foundry capacity as well as 200mm fab equipment, and it shows no signs of abating in 2021.

Foundry customers will face a shortfall of 200mm capacity at select foundries at least in the first half of 2021, and perhaps beyond. Those customers will need to plan ahead to ensure they obtain enough 200mm capacity in 2021. Otherwise they could get locked out of the market altogether, or may need to pay a premium for that capacity.

The 200mm market is a sizeable business for device and equipment makers alike. More than 200 fabs in operation worldwide today produce chips using 200mm (8-inch) diameter wafers.

Don't worry about the next Q results- Look forward- DNEX is in the best sectors now

1-Oil & Gas---------- Ping Petroleum ( North Sea-UK)

2-Semiconductor----SilTerra JV with Beijing CBP

The FUTURE prospects is fantastic


D NEXt MULTI bagger.

WOW- 500 million units done so far- still early in the day- Amazing.!

At the rate Dnext is moving- it could reach the day's upper limit later around 4.30pm today.

DNEXt multi bagger - Buy and HOLD for Max Returns. TP.1.80

An Purchase Agreement has already been endorsed by DneX and the British Vendor. Can be considered a done deal. No worries.

Dagang Nexchange Bhd (DNeX) said it will pay RM314mil (US$78mil) for an additional 60% stake in Ping Petroleum Ltd, raising its stake in the oil and gas company to 90%.

The company today entered into a share sale and purchase agreement with a group of vendors to acquire the stake for a combination of US$40mil cash and the issuance of 360 million new shares.
------------------------------------
Posted by mitchu > Feb 14, 2021 11:17 AM | Report Abuse

Not yet buy yet.price might change in lieu of higher oil price or deal called off
Posted by mitchu > Feb 14, 2021 11:17 AM | Report Abuse

Good advise. i3lurker- Always buy at your own risk and with eyes wide open.

Posted by i3lurker > Feb 13, 2021 9:34 PM | Report Abuse

Buy at your own risk on Monday
Kopitiam says buy at your own risk

buy with CASH and pickup if you need to.
as price goes up to RM1.00 region, it will get choppy and swing violently up and down.

if you buy contra sure lose money heavily

Buy at your own risk on monday as I believe Khazanah will sell to DNex.
They already have Proton as a good example to sell the case to cabinet.

Dagang NeXchange Bhd (DNeX) is raising its stake in Ping Petroleum Ltd by 60 per cent for RM314.3 million.

The additional stake increases DNeX's shareholding in Ping Petroleum to 90 per cent through wholly-owned DNeX Energy Sdn Bhd.

The proposed acquisition will be satisfied by a combination of U$40.95 million in cash, and the issuance of new ordinary shares in DNeX and new redeemable preference shares in DNeX Energy, for the remaining U$D37.05 million.

It was estimated that the Anasuria cluster had proved and probable (2P) reserve of about 26.6 million barrels of oil equivalent (MMboe).

The independent market valuation of the entire Ping's 2P reserve stood at US$212.7 million.

DNeX said the US$78.0 million for the 60 per cent stake represented a discount of around 40 per cent to the market valuation of Ping's 2P reserve.

Ping Petroleum's operating costs below US$20 per barrel will ensure the company remains profitable

Another big boost to Dnex -- Ping Petroleum.

$70 Oil Now Likely, Prominent Analyst Says

Feb. 12, 2021 11:56 am ET

The Barron's Daily

Oil prices have soared this year, and were back on the upswing Friday — their 10th gain in the past 11 days.

Brent crude futures were up 0.7%, to $61.54 a barrel. West Texas Intermediate crude futures, the U.S. benchmark, were up 0.4%, to $58.47 a barrel. Oil stocks have been on a tear, with one producer, Occidental Petroleum (ticker: OXY), rising 23% since the start of the month.t these prices, some analysts have begun warning that oil is a bubble that could pop.

Oil demand is still extremely depressed from pre-Covid levels, and companies may begin bringing supply back on the market if prices go high enough. The U.S. Energy Information Administration has predicted that prices will start to come down as more supply is brought on the market, and that Brent prices will average $52 this year.

But one Citigroup analyst who has successfully predicted market moves before expects the bullish run to continue — and possibly result in Brent crude rising above $70 this year.

Interesting article.

WHATEVER IT IS, DNEX WINS
---------------------------------
The news that the world is in short supply of chips as there are just not enough supply to meet demand. At the same time, the largest chip maker, TSMC has cornered 70% of the MCU market - not by design but due to their technological dominance where the rest of the competitors could not catch up - except for probably Samsung.

We have heard of there could be a delay in shipments of motor vehicles as when cars are fitted with more semiconductors when the demand has way outstripped supplies. Anyway, as in my previous article, I was critical of Malaysian companies like DNEX and Green Packet given the leading position to purchase the only fab owned by Malaysia - Silterra. They do not have the capabilities of running a fab.

The recent headline that says, Silterra is sold to DNEX - retaining the ownership in Malaysians hand. Well, it is a pride thing. In that deal, DNEX and CGP of Beijing on a 60%:40% basis has bid for Silterra which is now owned by Khazanah.

DNEX does not know how to run Silterra profitably, but the management of Silterra knows how to run the old 130nm fab as they have been doing it for years. Now China is really in need of chips and fabs especially given the Trade War situation as it is on the rush for owning and acquiring technologies such as a fab technology.

It is old but still needed especially that China will just take anything as long as it is still running and producing well. It may well be investing into a more current process technology and I believe given the technology maturity, the Silterra's team will know how to run it and make it working.

In the long run, on paper it is still owned by Malaysian company and it is just like the Proton Geely relationship where we for patriotism sake, we have 60% of ownership without ability to control the demand and supply while the other will control in terms of management and technology. Perhaps in this way, the Chinese would prefer the arrangement as they have a strong say.

Anyway, it is positive for DNEX

Silterra- An Unpolished Gem
-----------------------------
“SilTerra is the only company in Malaysia involved in wafer fabrication and we must not exchange this for a small amount of money but should instead support the whole national strategic interest.

“Due to the prohibitive cost of setting up a wafer foundry of at least US$1 billion, the country will not have any more opportunities to set up a similar plant that, if properly run, can benefit the nation,” asserts one of the proponents.

Local company DNEX is partnering Beijing CGP Investment Co Ltd in its bid for SilTerra. The joint venture has submitted a bid valued at around RM500 million, which includes the setting up of a technology fund to help local companies leverage on SilTerra’s and its partners’ technological competency, to develop E&E products for both the domestic and global markets.

A RM15 billion fund that specialises in integrated circuits development, CGP is said to be a proxy for the Chinese IC industry. Among its investee companies is Semiconductor Manufacturing International Corp( SMIC) listed in HK with a Market cap of RM145 billion @ 10th Feb 2021.

Apparently China has applied time pressure on the Malaysian government to accept a deal for foundry SilTerra Malaysia Sdn Bhd from Dagang NeXchange Bhd., according to a local report.

It is worth noting that while Malaysia appears to be throwing in the towel in wafer fabrication, the superpowers are stepping up their investments.

The current shortage is largely the result of substantial swings in demand due to the pandemic and the increased use of semiconductors in advanced vehicles ie electric vehicles.

China has pledged an estimated US$1.4 trillion (RM5.8 trillion) through 2025 to develop its semiconductor industry.

Bro - here you go-

https://www.nst.com.my/business/2020/12/647663/dnex-chinese-partner-outline-nearly-rm1bil-turnaround-plans-silterra

Posted by Profit1 > Feb 13, 2021 1:44 AM | Report Abuse

Goldberg, the source of your news pls. Oil is going up too. Tq

Global Shortage of 200mm capacity- The chip that SllTerra fabricates
--------------------------------------------

A surge in demand for various chips is causing shortages for select 200mm foundry capacity as well as 200mm fab equipment, and it shows no signs of abating in 2021.

Foundry customers will face a shortfall of 200mm capacity at select foundries at least in the first half of 2021, and perhaps beyond. Those customers will need to plan ahead to ensure they obtain enough 200mm capacity in 2021. Otherwise they could get locked out of the market altogether, or may need to pay a premium for that capacity.

The 200mm market is a sizeable business for device and equipment makers alike. More than 200 fabs in operation worldwide today produce chips using 200mm (8-inch) diameter wafers. Chipmakers use these 200mm fabs to manufacture chips based on mature processes, ranging from the 350nm to the 90nm nodes. Analog, display drivers, power management ICs (PMICs), and RF devices are among the chips produced in 200mm fabs.

“Demand for 200mm capacity used to be cyclical, but over the last few years, that dynamic has changed,” said Walter Ng, vice president of business development at UMC. “We have seen 200mm demand continue to outpace supply across the industry. Many devices are long-lived products, which will stay on the existing technologies for some time. Other new applications are also coming to the market, wanting to take advantage of the technology/cost benefits of the 200mm technology nodes. This creates the new norm for 200mm, with industry demand continuously outpacing industry supply for the foreseeable future.”

https://semiengineering.com/200mm-demand-surges/

SILTERRA- A Pure-Play Global Semiconductor Foundry
-----------------------------------------------------
SilTerra is a 200mm semiconductor wafer foundry, offering CMOS fabrication processes for integrated circuits (ICs) in Advanced Logic, Mixed Signal & Radio Frequency and High Voltage applications.

Today, as industry convergence continues to shape the future of nanoelectronics in healthcare, life sciences, mobility and connectivity, SilTerra is collaborating with partners and customers to develop what will be tomorrow’s connected technologies.

By building on its current process technologies, SilTerra has progressed into more advanced technology areas such as Silicon Photonics, Bio-photonics, MEMS on CMOS, Galium Nitride(GaN), BC​D and Discrete Power – also known as “More-than-Moore” technologies.

SilTerra has been working with customers to develop and launch leading-edge products such as bio-sensors, DNA sequencing chips, next-generation fingerprint sensors, micro-mirror displays and ultra low-power chips for applications in IOT, consumer electronics, data communications, industrial automation, healthcare and automotive segments. SilTerra’s advances in the field of power management and high efficiency power devices have enabled our customers to address green technology requirements in the mobility and industrial automation markets.

Globally ranked 16th by IC Insights in the category of pure-play foundries, SilTerra’s leadership in the industry is the result of years of developing local skills as well as nurturing strategic partnerships.

DNeX, Chinese partner outline nearly RM1bil turnaround plans for SilTerra
----------------------------------------------------------------------
KUALA LUMPUR: Dagang NeXchange Bhd has outlined short, medium and long-term plans to transform SilTerra Malaysia Sdn Bhd under its updated takeover plans.

Sources said DNeX and consortium partner Beijing CGP Investment Co Ltd, in their updated bid presented to Khazanah Nasional Bhd, planned to invest nearly RM1 billion in the troubled government-owned semiconductor firm by 2023.

The companies would first focus on business, financial and operational turnaround of SilTerra over 24 months, they added.

Over the medium term of two to five years, the DNeX-Beijing CGP consortium will encourage interest in electrical and electronics (E&E) and semiconductor sectors via a RM150 million innovation fund.

The consortium will also form a strategic partnership with national applied research and development centre Mimos Bhd to invigorate interest in the semiconductor and E&E sectors.

The partnership will allow SilTerra to focus on its commercial fabrication activities while Mimos can focus its strength as industry enabler in the areas of R&D and tech development, engineering, experimental FAB and small scale production.

The long-term plan of up to 10 years will entail efforts to position SilTerra as the nation's Unicorn and to leverage on its unique's position to build semiconductor industry eco-system witn the help of Beijing CGP and its limited partners' network of semiconductor companies.

"SilTerra can be Malaysia's US$1 billion Unicorn for technology companies by 2025. With production achieving near designed capacity for SilTerra's FAB-1 of 40,000 wafers per month (wpm) and FAB-1E of up to 10,000 wpm, revenue can increase to US$300 million with a net profit of US$75 million at a valuation at US$1.5 billion," a source said.

Semiconductor Chips Are in Hot Demand—and That’s a Problem
-----------------------------------------------

Surging appetite for 5G smartphones, rebounding car sales squeeze semiconductor makers

Wall Street Journal

Semiconductor companies are asking their customers for patience as the industry works through a sharp increase in demand from makers of everything from cars to consumer electronics.

The chip shortage has caused prices to rise for certain semiconductors, delays in filling orders and auto makers to idle factories. If the problems persist, consumers may see delays in getting new cars and some electronic devices, and possibly higher prices.

There is no quick fix to the situation, either. Adding new chip-making machinery can be expensive and slow, and some of the deepest supply problems are taking place with older production lines that are less lucrative for manufacturers.

“In the whole semiconductor industry there is very little [spare] capacity right now—everything is doing well,” said Risto Puhakka, president of VLSIresearch, an industry-analysis firm. “We’re coming off a record investment year, and the demand continues to grow.”

The shortages add to the upheaval currently affecting the semiconductor industry. Intel Corp. this week ousted its chief executive, Bob Swan, after product delays, and mobile-phone chip giant Qualcomm Inc. added to a deal-making frenzy.

Temporary Closure of Resorts World Genting (RWG)

Following the announcement made by the government on 2 February 2021 to extend the Movement Control Order (MCO) until 18 February 2021, RWG will remain closed during this period. However, essential resort-based services such as security, bomba, utilities and clinics will be operational.

Kindly visit our website regularly for further updates.

We regret any inconvenience caused by the temporary closure of our resort.

Thank you.

Dnex price need to be pushed to around Rm0.80 to raise the MUCH NEEDED FUNDSs to finance acquisitions ( Silterra & Ping Petroleum) -via the exercise of Warrants- WD. that will be expiring in July 2021.

Warrant conversion will raise RM355.7mil

Details-

Dnex-WD 2016/2021

711,396,809 units

Exercise price of RM0.50

Price of WD- 6.5 sen

Dnex.............43 sen.

SILTERRA - A PURE SEMICONDUCTOR PLAY.

DNEX and Beijing CGP Investment Co Ltd., will invest RM 500 Million in SilTerra in the future to continue to develop the company’s business. DNEX has a 60% stake in this acquisition and Beijing CGP , 40%.

But where did the funds for this acquisition come from? Obviously, the cash of around RM 42 Million shown by DNEX in Q3 of 2020 is definitely not enough to acquire SilTerra, so this Chinese government-linked enterprise has played a big role! As China wants to realize Made in China 2025, it can be seen that they are working hard to acquire IP and technology companies to reduce the impact caused by the entity list. According to IC Insight, SilTerra is ranked 16th in the world. Foundry companies, and from the perspective of attracting Foxconn and X-FAB, must have their own value

The shareholders behind DNEX’s partner Beijing CGP are CICIIF and E-Town Capital, which are funded by the Chinese government to develop the semiconductor business. Generally speaking, it is good for SilTerra, but it needs to turnaround , and it may take some more time to bring profit to DNEX.

The information mentioned by SilTerra on the official website is that they can currently process 200mm wafers and about 46,000 wafers per month, but the most advanced foundries in the market are currently at the stage of 300mm wafers. SilTerra has not received capital expenditure investment from the parent company Khazanah since 2007, and the technical content naturally lags behind many major companies.

Most of the local technology companies are at the lower end of the Semicon value chain ie ATE, OSAT and EMS.

SilTerra is PURE SEMICONDUCTOR PLAY as it fabricates semiconductor wafers.

A wafer is a thin piece of semiconductor material, usually crystalline silicon, in the shape of a very thin disc that is used as a base for fabricating electronic integrated circuits (ICs) and silicon-based photovoltaic cells.

The NEX multi Bagger

Gong Xi Fa Cai everyone- Take Care !

Monday - Bull Run start ya.

Huat Arrrrr.

SILTERRA will be RUN by the Beijing CGP JV PARTNER- providing expertise & exposure to the massive CHINA market.
-----------------------------------------------------------------

The world is in short supply of chips as there are just not enough supply to meet demand. At the same time, the largest chip maker, TSMC has cornered 70% of the MCU market - not by design but due to their technological dominance where the rest of the competitors could not catch up - except for probably Samsung.

We have heard of there could be a delay in shipments of motor vehicles as when cars are fitted with more semiconductors when the demand has way outstripped supplies. Anyway, as in my previous article, I was critical of Malaysian companies like DNEX and Green Packet given the leading position to purchase the only fab owned by Malaysia - Silterra. They do not have the capabilities of running a fab.

Silterra is sold to DNEX - retaining the ownership in Malaysians hand. Well, it is a pride thing. In that deal, DNEX and CGP of Beijing on a 60%:40% basis has bid for Silterra which is now owned by Khazanah.

DNEX does not know how to run Silterra, but the management of Silterra knows how to run the old 130nm fab as they have been doing it for years. Now China is really in need of chips and fabs especially given the Trade War situation as it is on the rush for owning and acquiring technologies such as a fab technology.

INVESTORS in DNEX will WIN BIG - BUY & HOLD for 1 years least.


A POTENTIAL MULTI BAGGER

The use of Disposable Gloves in Retailing.- New SOP
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'Give retailers adequate time to get disposable gloves'-

By Esther Landau, Farah Solhi - February 10, 2021 @ 9:50am

While expressing relief on the government's latest decision to allow the resumption of retail businesses today, MRA deputy president Raymond Teo said some of the SOP, including the use of disposable gloves for customers to prevent the spread of Covid-19, would need detailed preparation beforehand.

"If the decision was announced sooner, we would have some time to get things ready.

"I notice some of the additional requirements under the SOP include the use of disposable gloves for customers.

Per Edge- CEO Briefing
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Regardless of what the manipulative IBs say, the GLOVE sector is still the best sector to invest in.
Here's the reason why-

Rising NPLs ( Bad bank Loans) paint bleak picture of economic recovery-

1-Impaired loans creeping up every month in 4th qtr 2020
after loan moratorium ended Sept 30

2-NPLs reached 9-year high of RM28.7b end-2020
RM24.9b in Sept 2020 , NPL rose to RM25.7b in October ,RM27.8b and RM28.7b in Nov and Dec respectively

3-Ratio of NPL to total loans rose in tandem 0.84% in Sept 2020 to 0.87% in Oct, 0.95% in Nov and 0.99% in Dec

4-Household sector, wholesale, retail, restaurants, hotels , finance, tourism, gaming will be hardest hit and take years to fully recover.

Vaccines will not eradicate the pandemic- ie not a silver bullet per WHO as new variants spread worldwide.

Latest news on FDI in Malaysia. So much for recovery stocks. Glove is still the safest.

https://www.straitstimes.com/asia/se-asia/foreign-investment-in-malays...

EVOLVING GLOBALLY- SUPER TO THE MAX.
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Supermax may ride on the Americans producing their own gloves

SUPERMAX Corp Bhd has found itself in a sweet spot as the US may contemplate using its Defence Production Act (DPA) to produce 12 billion gloves annually to reduce its reliance on imported personal protection equipment (PPE).

RHB Research reckoned that the glove maker stands a great chance of participating in this initiative.

“It (Supermax) has distribution channels through Aurelia Gloves in the US,” enthused analyst Alan Lim in a company update. “From its website, Aurelia Gloves stated that it has been the top provider of examination gloves in the North American market since 2000.”

As Supermax is also the glove manufacturer with a 26.2 billion pieces per annum (ppa) capacity, it could be able to participate in this DPA initiative, according to RHB Research.

In fact, the company has shared details of its plan to build a manufacturing facility in its 2Q FY2021 results announcement,” Lim pointed out.

At a media briefing by the White House COVID-19 Response Team and public health officials, the COVID-19 Supply Coordinators representative Tim Manning was quoted as saying:

“Right now, we just don’t have enough gloves; we’re nearly 100% reliant on overseas manufacturers to export to our country surgical gloves that protect healthcare workers, and that’s unacceptable.”

RHB Research expects positive news flow on this matter over the next three to six months.

“The company’s stronger earnings growth prospects in 3Q FY2021F and investors’ expectation of a special dividend should support its share price performance as well,” projected the research house.

All-in, RHB Research retained its “buy” rating on Supermax with an unchanged target price of RM12.60 premised on (i) positive news flow on its US glove manufacturing plant in the near term; (ii) earnings growth in 3Q FY2021F; and (iii) expectation of special dividends.