For its fourth quarter ended June 30, 2022 (4Q22), Dnex recorded a net profit of RM160.59mil on a revenue of RM430.29mil, mainly supported by a robust contribution from its technology and energy segments.
Dnex went into the business of wafer fabs following its purchase of Malaysian semiconductor manufacturer Silterra in July last year.
It also acquired an additional 60% in Ping Petroleum in 2021.
“In the medium term, Dnex’s growth will also be underpinned with its new Avalon greenfield, up and coming in mid-2025 (FY26), which would potentially quadruple Ping Petroleum’s current output, and its recent memorandum of understanding with Foxconn to develop a new 12-inch wafer fab to support its electric vehicle ventures.
KUALA LUMPUR (Nov 8): Global silicon wafer shipments are projected to increase 4.8% year-on-year in 2022 to a record high of nearly 14,700 millions of square inches (MSI), according to the US-based Semiconductor Equipment & Materials International (SEMI).
Silicon wafers are the fundamental building material for the majority of semiconductors, which are vital components of all electronic devices.
DNeX's 2 large cash generating engines - SilTerra and Ping is widely expected to double it's profits in FY23.
Overall
SilTerra:
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.
Surprises
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.
Expectations
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.
Gerald lam , u are always a wise investor with long term vision , not like other impatient gambler who only wants fast money within 1 day ! I respect u !
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Plantermen
2,257 posts
Posted by Plantermen > 2022-11-04 21:54 | Report Abuse
Yes. Mabel under Tan Sri Zainal {Group CEO} DNex has charted its long term growth. More upside for coming Qtr result. Cheers