Gerard Lam

GillianTan78 | Joined since 2020-10-20

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1 month ago | Report Abuse

At current valuation, investors are basically pricing in Silterra to be worth zero to DNeX, which is an impossible scenario.

Let's assess what are the outcomes of the arbitration, and its impact to DNeX:

If arbitration favours DNeX:

If the arbitration favours DNeX, DNeX would retain 60% direct interest in Silterra, and CGP would retain 40%.

Next question would be would CGP sell out?

If CGP sells out - Other chip majors such as Foxconn (already have a direct interest in DNeX and working to build a 12 inch fab with DNeX) would highly likely acquire this 40% stake. This would further leverage DNeX's postion in the EV industry and boost Silterra's value

If CGP does not sell out - then Business As Usual.

If arbitration favours CGP:

DNeX will be left with 40% stake in Silterra.

Let's say DNeX sells out its 40% stake, this would equal to a potential proceed of RM2.4bil to DNeX, being equity value of RM6bil x 40% = RM2.4bil.

RM2.4bil, would be RM0.76 per share, being RM2.4bil / 3.16bil shares (Just for Silterra portion, not including DNeX's other business that are worth around RM0.47 per share, taking a brokerage house's estimates)

In no scenario would DNeX value just be RM0.55 (pricing in 0 value from Silterra), as the worst case would be DNeX owning 40%, instead of 0%.


1 month ago | Report Abuse

SilTerra's new LTA was signed with Pacific Biosciences (Nasdaq listed).

Agreement entails a 4 year take or pay supply contract of for MEMS advanced biosciences chips IP by SilTerra, at an average ASP of 3x current chip prices due to it being specialty chips


1 month ago | Report Abuse

Wanted to further add on but looking at your uncivilized comment, will only personally respond to PM messages.


1 month ago | Report Abuse

- Malaysia is in good position to benefit from chip war between US & China
- Company not affected by minimum wage as all employees earning above RM1,500 per month
- In view of good corporate governance, Chairman Tan Sri Mamat not seeking re-election as he had served 9 years (close to 10 years requirement for good corporate governance).

Company in very good position for 2023 due to increase ASP from LTA and high margin from remaining 30% capacity.
Ping Petroleum riser has been fixed and capacity will improve back to 100%.
IT revenue on track and diversification beyond NSW bearing fruit

As seen in growing institutional participation in Dnex's shareholding, Dnex is poised to be a MEMS and Silicon Photonics champion in semiconductor in South East Asia, temporary setback from arbitration not expected to have major impact as relationship is still cordial between both parties, and just want to sort out the facts legally.


1 month ago | Report Abuse

Update from AGM:
- Silterra technology roadmap completed
- MOU with Foxconn is on track, details will be announced when ready. Does not rule out plan to manufacture EV but focus now is on 28nm fab with Foxconn first.
- 70% LTA with ChipOne, ILI & Holychip fill the gap for next 12 month period, and orders from new key customers fill the remaining 30%
- 10% capacity upgrade will be ready by 1H23. ASP for MEMS and Silicon Photonics command very high margin and Silterra is a key player
- MEMS used in smart car revolution and autonomous driving
- Silicon Photonics used for next generation data centers, high performance computing and sensors for EV
- Working with IMEC on establishment of Joint Semiconductor R&D Centre which is intended to be IMEC's Regional R&D Centre in South East Asia


1 month ago | Report Abuse

DNeX AGM will be on today (6 Dec), 10am - 11am

Any shareholder grievances should be voiced out to the management and also be reflected in your voting of agenda items.

Note that SilTerra has completed a new LTA for its Silicon Photonics ramp up with a prominent US customer. Silicon Photonics chips are high in demand due to its high value and economical use for data centers.

Prospects of SilTerra remains bright, and if Beijing CGP decides to sell out its 40% if the arbitration does not go in their favor, there are many other large players waiting in line to buy in such as Foxconn

News & Blogs

2 months ago | Report Abuse

Key facts:
1. ICPS has not been issued by DNeX Semi, so CGP has no right to subscribe for additional ordinary shares
2. SilTerra is and must always be 55% Malaysian owned, dispute will not result in favorable outcome for foreign parties trying to wrestle controlling stake purely for economic purposes
3. Last resort, CGP is more than welcomed to sell their 40% stake in SilTerra. Many others especially Foxconn waiting desperately in queue.
4. Most sellers today were retailers, institutions pop up to acquire DNeX shares at attractive prices
5. Cancelling LTA by CGP may result in huge penalties payable by CGP, but more than welcome if they do so. Free money for SilTerra + capacity can be better used for Foxconn for EV ambitions


2 months ago | Report Abuse

Key facts:
1. ICPS has not been issued by DNeX Semi, so CGP has no right to subscribe for additional ordinary shares
2. SilTerra is and must always be 55% Malaysian owned, dispute will not result in favorable outcome for foreign parties trying to wrestle controlling stake purely for economic purposes
3. Last resort, CGP is more than welcomed to sell their 40% stake in SilTerra. Many others especially Foxconn waiting desperately in queue.
4. Most sellers today were retailers, institutions pop up to acquire DNeX shares at attractive prices
5. Cancelling LTA by CGP may result in huge penalties payable by CGP, but more than welcome if they do so. Free money for SilTerra + capacity can be better used for Foxconn for EV ambitions


2 months ago | Report Abuse

DNeX's 2 large cash generating engines - SilTerra and Ping is widely expected to double it's profits in FY23.



Secured agreement to supply wafers to World's Number 1 Low Energy Bluetooth company - Nordic Semiconductor ~ Cash upfront is 1.4x of current 8 inch wafer prices due to shortage of such specialty design.

Secured agreement to supply MEMS wafers to Number 1 Semiconductor company in the Middle East ~ Pearl Semiconductor ~ Cash upfront 3x of current 8 inch wafer prices due to 1st in the world design of such MEMS specialty design.

Cash upfront deposit of 40% from existing LTA covering 60% of existing capacity + re-opening of China economy spurring demand for Driver IC's

Ping Petroleum:

Completion of repair of a key component of Anasuria Cluster to boost productivity by 50%, resulting in Ping profit to potentially double provided oil is at current prices ~US$80-90/bbl.


Much to our surprise, SilTerra is moving up the global SIlicon Photonics and MEMS value chain at a rapid pace, due to its early investments in such technology and collaboration with global semiconductor R&D giant iMEC.

As global chip company scramble due to high inventory levels for conventional PC chips, SilTerra is insulated from such oversupply due to its superior inbuilt technology to supply these next generation chips that are expected to be mass adopted beginning from the end of FY23.


EPF accumulated a stake of up to 3.8% based on latest Annual Report filed ~ While this was widely expected by us, it is still a very positive news given large local ongoing institutional support.

Foreign institutional funds begin to upstake DNeX due to their better understanding of the widely positive financial impact from mass adoption of MEMS and Silicon Photonics by global conglomerates, especially in the use of low powered / battery enhancement products.


2022-10-13 18:54 | Report Abuse

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.


2022-02-15 11:30 | Report Abuse

Note that all 3 of Success Transformers products has been receiving myriads of orders in recent months.

This is due to:
1. The replenishment exercise by major Municipals due to damages to street lights.
2. Air purifier product being sold like hot cake since end of last year.
3. Potential moving into EV segment via electric charging of batteries

At RM0.755 per share, the company is highly undervalued.

Expect Q4 results to show significant improvement due to factors 1 & 2 above.

Share price is expected to further propel once factor 3 is finalized.


2022-02-15 11:26 | Report Abuse

Note that SMIC had announced a leap in earnings growth few days back.

The main contributors were due to ASP hike in 200mm/8 inch wafer chips.

Based on channel checks, SilTerra's GaN and Silicon Photonics that are patented are receiving myriads of orders up from 1.5 years ahead due to its technological superiority and years of investment in R&D by SilTerra.

Expect DNeX's share price to continue to rise to reflect full value of SilTerra and Ping Petroleum.

Most foreign institutional investors had taken notice and began to purchase DNeX shares since last month.

On a channel check, an American fund has prescribed an intrinsic value based on SOTP DCF of RM5 / share based on beginning 2025 valuation, factoring in the highly valuable GaN, Silicon Photonics and MEMS.


2022-01-25 09:38 | Report Abuse

Note that DNeX will not require further material fund raising exercise as they have more than RM700mil in cash and bank balances as at December 2021.

The price action today is merely a panic selloff after a major dip in US indices (before recovery) yesterday.

Note that DNeX's expansion is to cater for high technology and high demand wafer chips built on 200mm wafers, including the revolutionary 180nm BCD Automotive Grade 0 chip that will be used in Foxconn's EV.

Based on trade statistics, during the second half session yesterday were local and foreign institutional investors while net sellers remained retailers.


2022-01-24 14:11 | Report Abuse

Note that Foxconn completed a deal with Indonesian Battery Corporation, together with PT Indika Energy and Taiwanese electric bike company - Gogoro to jointly develop battery manufacturing and electrical vehicle ecosystem in the country.

Late last year, Foxconn made its mark into Thailand with a partnership with Thai giants PTT to explore EV opportunities in the country.

This coincided with the time of completion of SilTerra's 180nm BCD Automotive grade 0 wafer chip that is used in Electric Vehicles.

In Tan Sri Syed Zainal's interview earlier this year, he mentioned that there is additional land and capacity in SilTerra's Kulim manufacturing plant and DNeX had initiated discussions with Foxconn and CGP.

Since then, Dr Albert SK Pang (formerly of Shanghai Huali) had been appointed as officer in charge of SilTerra.

It is not known to many that Shanghai Huali is an affiliate of German-Chinese electric car manufacturer - Byton.

With so many public leads, it is obvious that DNeX (by virtue of its direct interest in SilTerra)'s share price can continue to further run up, with several foreign investment analysts estimate being even higher than RM1.5/share.


2022-01-12 12:37 | Report Abuse

Dear David,

Remainder comprise of:
1. Small foreign net sell of RM2.3mil
2. Short selling value

Note that 99% of value on short selling comprise of sell only position, as during the period of Jan 3 - 7, 99% of short selling position was outstanding.

Simply put, you can expect them to “buyback” DNeX shares this week to cover their short position if DNeX’s price runs further this week.


2022-01-12 12:20 | Report Abuse

Dear Beginner,

Data is specific to DNeX.

Thank you.


2022-01-12 12:06 | Report Abuse

Updates on DNeX price:

- Price is consolidating at RM0.86 range post staging a strong technical recovery from RM0.83 the day prior.
- Volume traded on first trading half is low, being 15% of average total traded volume for the past 7 trading days.
- Main buyers for the past week was Local Institutional Investors, with a total net buy of RM114.4mil for the week from Jan 3 - 7.
- Main sellers for the past week was Local Retail Investors, with a total net sell of RM74.8mil for the week from Jan 3 - 7.
- Local Institutional Investors are playing a wait and see approach in view of strong accumulation with a volume weighted average price of RM0.847 for the past 7 trading days.
- Uptrend is expected to continue thereafter, with the first potential to test price at RM1.08, and RM1.5 thereafter.


2022-01-10 12:58 | Report Abuse

After a week of surge, DNeX's share price began to test its resistance at RM0.89. Facing this price resistance, the price begain 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 oils 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.


2022-01-06 16:30 | Report Abuse

Success' main business comprise of:

i. Manufacturing and selling of transfomers to municipal and governments (Malaysia, China, Australia, Singapore, Kenya)

ii. Manufacturing and selling of smart lighting ("ILCS") to municipal and governments

iii. Manufacturing and Fabrication of metal/steel/aluminium for smart lighting via its subsidiary Omega Steel Industries

iv. Portable air purifier (Kare4u) using Korean technology approved by FDA

The company is highly undervalued in terms of financials, as net cash of the company (including short term investments) are valued at RM0.55/share

The company's net assets or equity value is RM1.47 per share with zero borrowings.

The company's products are highly scalable into smart technologies in Electric Vehicles and Solar.

Based on Nov21 chart, the share price experienced a sell off post ex-dividend date and reporting of Q1 financials.

However, the company is widely expected to report better financials in FY22 as economies open up and municipal and governments replace conventional lighting with smart lighting with monitoring and sensor system.

Note that the company's intangible value is that they fabricate their own products, thus not being adversely affected in the purchase supply chain.

Further catalyst is the company's recently launched business on Korean air purifier approved by FDA. This product has been selling like hot cakes in recent months as the economy gradually opens up with the need for greater hygienic level.

During the recently concluded AGM, management did not rule out any business opportunities / collaboration in the EV industry.

At current price of RM0.795, the company is definitely worht a relook.


2022-01-05 10:56 | Report Abuse

DNeX's main business units comprise of:

i. SilTerra

ii. Ping Petroleum

iii. Trade facilitation ("National Single Window")

iv. Subsea Cable installation

In its recently announced quarterly financial results, core PATAMI was recorded at RM41.3mil.

Based on that core PATAMI, SilTerra's PATAMI contribution was only 2 months (RM21mil). This was due to the acquisition being completed in July 2021.

During that period, average ASP for Wafer per mask layers were USD20.8. Based on channel checks, Wafer per mask layers ASP had increased by 25% and is expected to continue to surge going into 2022.

Based on 25% increase in ASP, SilTerra is expected to record RM39mil - RM40mil in core PATAMI for Q222.

Assuming profitability of Ping Petroleum and other businesses remains constant (Although it is expected to rise), DNeX is expected to record a profit of RM59mil - RM60mil in Q222 (3 months).

Using a blended PE of 25 (Technology + Oil and gas sector), DNeX's value should be RM1.87 (Based on annualised profit of RM59mil)

Using a blended PE of 30 (Technology + Oil and gas sector), factoring in recovery of crude price, DNeX's value should be RM2.25 (Based on annualised profit of RM59mil)

At current price of RM0.845, DNeX is significantly undervalued.


2021-12-07 08:22 | Report Abuse

Appointment of the two new directors are to further enhance the board knowledge on accounting and legal.

DNex's prospects remains in tact with Silterra ASP rising month on month.


2021-12-06 10:26 | Report Abuse

UnclePho's comments all red flagged. What happened?


2021-11-30 11:25 | Report Abuse

MediaTek is the top fabless company in Taiwan and top 5 in the world.


2021-11-30 11:24 | Report Abuse

Note that ILI Technology Corp is a wholly owned subsidiary of MStar Technologies, which in turn is a wholly owned subsidiary of MediaTek.

This deal with ILI Technology Corp is expected to boost SilTerra's earnings quite substantially.

Also in the cards are discussion with Foxconn and CGP on a new 300mm facility to permanently boost SilTerra's capacity.

The new plant is expected to be fully loaded for EV productions.


2021-11-26 13:38 | Report Abuse

Unfortunately, there are some sourgrapes here that missed out on DNeX that keep bad mouthing.

Sad to see them only typing here everyday while others laughing to the bank.


2021-11-26 13:30 | Report Abuse

Correction: Silterra acquisition was completed in end July.

Thus RM22mil is only August and Sep21 contribution.

This means that full 3 months should be RM33mil.

At PE of 45x, Silterra worth to Dnex alone is RM1.88.


2021-11-26 13:26 | Report Abuse

Noted that SilTerra contributed RM22mil profit this quarter, assuming full year of RM88mil, at technology index PE of 45x, Silterra alone to Dnex is worth RM1.26.

This is excluding effects of ASP price hike in future from severe chip shortage.


2021-10-25 09:43 | Report Abuse

As shared during the weekend session on the topic Global Chip Crunch, many leading industry experts had mentioned that chip prices for 200mm wafers had soared more than 40%-100%.

DNeX is poised to record a record breaking revenue and profit from SilTerra (expected to double in revenue and record a record breaking profit).

Further catalyst is collaboration on supply deal with Foxconn on EV.


2021-10-22 10:53 | Report Abuse

Note that SilTerra's 180nm Bipolar CMOS-DMOS ("BCD") automotive grade 0 technology chip was announced on 26 August 2021 (First BCD chip in the world to be grade 0)

Also, this chip has entered mass production since September 2021.

Foxconn's EV announcement was then on 18 October 2021.

Coincidence? or not?

You be the judge.


2021-10-21 16:25 | Report Abuse

Based on verified sources, DNeX is in advanced talks with Foxconn on multi year wafer supply deal for Foxconn's EV manufacturing.

The deal involves multi year supply of SilTerra's latest 180nm BCD automotive Grade 0 chip.

This deal is expected to be a bumper deal for SilTerra as it will leapfrog its revenue by double due to worldwide chip shortage.


2021-09-28 20:37 | Report Abuse

There are some less credible comments made above to clarify:

Comment 1 - "400mm is Taiwan Standard, maybe 800mm now"

Fact 1 - "TSMC is in early stages of exploration and research of 400mm wafer. The major roadblock for 400mm wafer chips is that the development of 400mm wafer requires costs that are so significant that, at the moment, even if mass produced, cannot be recovered at a profit.

In layman terms,
Cost to develop and mass produce a 400mm wafer chip for iPhone = US$10,000 per fragment wafer
Revenue earned from selling a wafer chip to iPhone = US$500 per fragment wafer

Thus, 400mm wafer chip is still light years away"

Comment 2 - "200mm wafer is useless"

Fact 2 - "200mm is the most used semiconductor chip in EV. It is also the main reason for the global chip shortage. While 300mm wafer chip is widely used in phones, it is less used for EVs"


2021-09-28 18:07 | Report Abuse

Note that under the terms of the Sale and Purchase Agreement ("SPA") between Khazanah and DNeX, that Khazanah had cleared all Accumulated Losses in DNeX via forgiving the convertible loans that SilTerra owes Khazanah.

The convertible loan forgiven (Share capital) has been capitalised and offsetted against the accumulated losses.

Fact: As such, DNeX will not be consolidating SilTerra's historical accumulated losses as it has been offsetted by the recapitalisation of the forgiven debt/convertible loan notes.

Please read the SPA disclosed by DNeX to Bursa clearly.


2021-09-28 14:04 | Report Abuse

Note that Foxconn and PTT are in advanced negotiation stages on the production/manufacturing of EV's.

Foxconn's head honcho had mentioned in an interview to Taiwan reporters that they will be tapping into SilTerra and Macronix on the supply of 8 inch wafers, which is semiconductor chips mainly used in EV.


2021-09-28 14:01 | Report Abuse

Key points from DNeX's recently announced results + future prospects:

i. Key points from Q4 results announcement:
- Based on the Purchase Price Allocation exercise performed on 60%-Ping acquisition, DNeX's consolidated 90%-share of the effects on business combination is RM273mil. This can be simply interpreted as the excess of fair values of Ping's inventories (oil) and assets (oil rig's and oil rights) over the price paid for the 60% stake.
- SilTerra's results is not consolidated yet as the acquisition is deemed completed only in July 2021 (refer announcement to Bursa).

Questions many may ask:
- The effects of business combination is only accounting, not real cash. Why is it good?

- While yes, the effects of business combination is only accounting, but it also means that Ping will be realising these oil inventories in the next few quarters at a higher fair value. Realising these oil inventories at higher value also means higher profit contribution from Ping to DNeX.

Note that the valuation of fair value of Ping's oil inventories are done by professional accountants/experts. In valuing these oil inventories, the factor considered is the net realizable value, which is the price Ping is able to fetch if they sold the oil inventories.

So the answer is - Yes this latest quarter result is good, because it proved to investors that Ping will be able to sell oil inventories at a higher price in the next few quarters, which translates to higher Profit.


2021-09-17 14:31 | Report Abuse

Based on 8 inch silicon grade wafer price of US4,500 per wafer above, SilTerra is capable/expected to rake in revenue of:

40,000 wafers per month x US4,500 = US180mil per month or US2.16bil per annum

Assuming a 20% net profit margin = US432mil or RM1.7bil net profit

Factored for DNeX's share of 60% = RM1bil net profit per annum

At PE of 15, SilTerra's value to DNeX alone is RM4.85 per share


2021-09-17 14:27 | Report Abuse

Premium rush for 8 inch wafers | 17 Sep 2021 0900 GMT +8

Silicon Today noted that prices for 8 inch wafers had once again increased by 20% due to a "Premium Rush" in the Electric Vehicles ("EV") market coupled with acute shortage for all other devices, particularly household and industrial electronics. This situation is exacerbated by lockdowns in Asia resulting in order to receive time had increased by a further two months.

Based on channel check, an 8 inch silicon grade wafer price had risen to US4,500 per wafer. The situation is expected to be worse in the coming months, and going into 2022.

News & Blogs

2021-09-03 14:07 | Report Abuse

Second hearsay statement made by another user above - "Assume can achieve profit margin 30% is overly optimistic"

Facts - Fortunately, there are global monthly IC analysis reports that analyses CMOS & DMOS IC chips by specs so that users are able to make a highly calculated analysis

News & Blogs

2021-09-03 14:05 | Report Abuse

To debunk some hearsay above with facts:

First statement made by user above - "Assume only Dnex will get the business. How many companies like Silterra in the world or let say Asia"

Facts - Fortunately, SilTerra is indeed the only wafer fab:
1. In the world that has BCP-CMOS-DMOS Grade 0 (Meaning chip is able to withstand temperatures up to -150C)
2. It is also the only company in the world to begin mass produce this chip
3. It is also the only company in the world to IP this IC chip
4. It is also the only company in the world that has both Foxconn as its shareholder + Beijing CGP as a major shareholder of its subsidiary
5. It is also the only company in the world that is able to secure long term supply contract with Chipone
6. It is also the only company closest proximity to Foxconn's EV plans in Thailand that has local presence + automotive grade 0 IC chips

Note that most major fabs in Asia had capacity already maxed out for Smartphone and other devices, whilst Silterra with RM200m equipment upgrade is able to increase its capacity by 10-15% without incurring large capex cost (Also the only one in Asia, the rest need 2 years for ramp up)


2021-09-02 10:26 | Report Abuse


- SilTerra is the first in the world to produce 180nm Bipolar-CMOS-DMOS (“BCD”) automotive grade process technology that is Grade 0.
- Even TSMC's highest technology for 8 inch BCD technology is only Grade 1.
- Even TSMC's 8 inch BCD technology that meets Grade 1 is non-automotive IC Chip
- Given Foxconn's ambitions in EV, to create competitive advantage, there is a high chance they will use SilTerra's BCD automotive IC chips (More powerful IC chip + already have a 3% stake in DNeX)


2021-09-01 09:57 | Report Abuse

SilTerra recently announced it has entered mass production for it's 180nm Bipolar-CMOS-DMOS ("BCD") automotive grade process technology.

This smart technology IC chip is the first in the world to be a 180nm 8 inch Grade 0 process.

Note that TSMC's 90nm 8 inch is only expected to pass qualification (Not automotive like SilTerra)

With global adoption of electric vehicles, SilTerra new mass production IC chip is in enormous demand.

Benchmarking with global IC companies selling 8 inch Bipolar-CMOS-DMOS IC chips, a single wafer for the Bipolar-CMOS-DMOS IC could fetch at minimum USD24k per wafer.

Assuming just 30% existing capacity is used for this technology, revenue could fetch at minimum RM1.3bil (30% capacity for Bipolar-CMOS-DMOS), with profit margin of 30% RM400mil.

In addition to that, load to Chipone making up the remaining 70% at revenue of RM1bil with profit margin of 8% of RM80mil

At minimum, net profit could fetch RM480mil, at PE of 38 (Benchmarked to Inari), SilTerra's value to DNeX alone should beRM3.5 (Not including Ping Petroleum)


2021-08-24 06:56 | Report Abuse

DNeX's SilTerra will benefit tremendously from the chip shortage experienced globally.

SilTerra has been operating at 91% since the beginning of the year.

Expansion of 10% is in the works after pumping in capital for upgrading wafer machineries.

Based on back of the envelope calculation, DNeX is expected to make a healthy PATAMI of RM150mil-RM200mil on RM1.3bil-Rm1.5bil revenue for FY21, mainly contributed by significant improvement in financial performance from SilTerra and Ping Petroleum.


2021-08-17 10:18 | Report Abuse

SilTerra's wafer blended average selling price has risen by more than 200% compared to same period last year.

Even if the cost cutting measures do not occur this year, profit is expected to jump to more than RM250mil - RM400mil.

- SilTerra is running at more than 90% capacity since March 2021
- Cost cutting measures by selling directly to China and Foxconn will begin to reduce their costs


2021-08-11 09:39 | Report Abuse

3. "Private placement one short done and over" - The difference between a good management and a bad management?
Good management raise cash to acquire quality assets, then turn them into cash generating assets before asking for more money.


2021-08-11 09:32 | Report Abuse

Answer to some queries above:

1. "Despite the selling, price didn't go down drastically" - Yes, and this is because of the warrant disposal absorption mechanism by institutional investors and forengn investors

2. "Whether CIMB fund flow report indicates who are the buyers and sellers" - The type of institution (example: sovereign, proprietary, etc) is indicated.


2021-08-10 19:12 | Report Abuse

Further rumours debunked:
3. Private placement of 30% will dilute share price significantly (Fact: Management has said that the 30% private placement is on a need basis and is it in batches)
4. Oil & gas industry is sunset industry
a. Achieving net zero emission and commendable ESG score is key for investors to assess. The remaining players in the industry has already been building carbon dioxide capture storage facilities that can be stored for decades for the oil & gas industry to achieve net zero objective.
b. China only expect local oil demand to surge until 2026 before beginning net zero objective, to achieve net zero only by 2060, which is 10 years later than the EU
c. The EU, expected to be the first coalition to achieve net zero by 2050, still expects fossil fuel to command 50% of total energy share by 2050).


2021-08-10 19:03 | Report Abuse

Rumours debunked:
1. Warrants conversion will keep diluting share price (Fact: 98% of warrants has already been converted and is already traded in the market)
2. Rights issue (Fact: Dnex has large net cash even after paying for acquisition of SilTerra and Ping via cash from warrant conversion. Immediate cash outflow from 50% of Avalon is small (US$5mil).

1. Foreigners were largest net buyers of Dnex despite being the major net seller for the whole bourse. (Source: CGS-CIMB fund flow report)
2. Institutional shareholders continue to be net buyers of Dnex for last week. (Source: CGS-CIMB fund flow report)
3. Retailers continue to be net sellers of Dnex after converting warrants to sell immediately desperately. (Source: CGS-CIMB fund flow report)


2021-07-26 08:19 | Report Abuse

DNeX is not a penny stock by virtue of its market capitalization of RM2.2bil.

Share price depends on myriad of factors, but what is factual is that for the past 2 weeks, the net buyers of DNeX were Institutional Investors and Proprietary Funds while net sellers were retailers, based on CGS-CIMB fund flow report.