Dagang Nexchange (DNeX) (former Time Engineering)

[winston]

not vested

The new chips on the block

DNeX is a proxy to SilTerra’s turnaround and higher crude oil prices via Ping.

We see exciting prospects for SilTerra leveraging on
1) semi chips shortages,
2) rising MtM adoption, and
3) ready access to China market through CGP.

We initiate coverage on DNeX with an Add and SOP-based TP of RM1.60.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... A87B6E5912

[winston]

CGS-CIMB starts coverage on Dagang NeXchange, target price RM1.60

by Surin Murugiah

In a note Wednesday (Feb 16), the research house said DNeX is well positioned to benefit from SilTerra’s turnaround, underpinned by ongoing semi chips shortages and structural shift towards More-than-Moore (MtM) devices.

The research house said it is projecting SilTerra to invest over RM900 million capex in FY22-24F.

“The group plans to increase its mask layer (ML) capacity by 20% to 10m ML/annum by CY23F.

“We expect SilTerra to secure two new long-term agreements (LTAs) in 1HCY22F that will take up 80% of its capacity,” it said.

CGS-CIMB projects DNeX to post a three-year core EPS CAGR of 453% (FY21-24F) driven by
1) higher wafers ASP,
2) higher wafers production volume on the back of new capacity expansion,
3) higher average crude oil prices for Ping Petroleum Ltd, and
4) higher production volume at Ping on the back of its new capex programme.

“DNeX also enjoys a lower effective tax rate given that SilTerra has over RM12 billion as of Jul-21 in unrecognised deferred tax assets that could be offset against its future profits.

“Note that we have yet to account for:
1) contributions from emerging technology platforms like silicon photonics that command premium ASP, and
2) commercialisation of Ping’s Avalon oilfield

Source: The Edge

https://www.theedgemarkets.com/node/607644

[winston]

not vested

SilTerra lifts DNeX's net profit to RM43.84m in 2QFY22; 0.6 sen interim dividend declared

by Seah Eu Hen

Source: theedgemarkets.com

https://www.theedgemarkets.com/article/ ... d-declared

[winston]

not vested

Chip pick-me-up

1HFY6/22 results were in line at 51%/52% of our/consensus FY22F net profit forecasts. The group declared an interim DPS of 0.6 sen in 2QFY22.

We project stronger earnings delivery in 2HFY22F, in view of resilient demand for semiconductor chips and higher average crude oil prices.

Reiterate Add, with an unchanged RM1.60 SOP-based TP.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... AAD16E3DF2

[winston]

not vested

Jan 19, 2022

HLIB initiates coverage of DNeX with 'buy' call, RM1.35 target price

by Lam Jian Wyn

We expect SilTerra to grow faster than its peers with a growth of 28% (versus a weighted average of 23% for its global peers).

DNeX holds a 60% stake in SilTerra.

Anasuria cluster has proved and probable (2P) reserve of approximately 26.6 million barrels of oil equivalent.

Source: theedgemarkets.com

https://www.theedgemarkets.com/node/604316

[winston]

not vested

HLIB Research sees stronger earnings for DNeX this year

by Tan Siew Mung

Silterra’s surging product average selling prices (ASPs), increasing wafer shipments and soaring crude oil prices.

Net ASP per wafer was still on an uptrend and is expected to peak in 4QFY22 (the fourth financial quarter ending June 30, 2022) and hover at about US$600 (about RM2,531.10) to US$625 in FY22 to FY23” .

DNeX is targeting for Ping's 100%-owned Avalon oilfield (greenfield) to produce its first oil in July 2024.

Avalon oilfield will potentially more than quadruple Ping’s output from about 2,300 barrels of oil equivalent per day (boepd) to about 9,000 to 10,500 boepd.

DNeX registered a record-high quarterly core profit after tax and minority interest (PATAMI) of RM62.5 million for 2QFY22, bringing its first-half core PATAMI to RM92.7 million.

Source: theedgemarkets.com

https://www.theedgemarkets.com/node/613570

[winston]

not vested

Dagang NeXchange
Poised for a stronger 4QFY22F

9MFY6/22 results beat expectations at 82% of our and 80% of Bloomberg consensus due to stronger-than-expected margin delivery in 3QFY6/22.

We project a stronger qoq core net profit growth in 4QFY6/22F, driven by higher crude oil prices for Ping and higher wafers ASP for SilTerra.

We raise FY22-24F EPS by 7-12%. Retain Add with a higher RM1.70 TP.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... B977760704

[winston]

New semis growth driver emerging

We see exciting growth opportunities for DNeX to solidify its position in semis
space with its new foundry JV with Foxconn and SilTerra’s turnaround plan.

Reiterate Add with an unchanged RM1.70 SOP-based TP.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 0A66BB0E12

[winston]

not vested

3Q Results

Rev: RM 383m
EPS: 1.64
Net Asset: 0.52

https://www.bursamalaysia.com/market_in ... id=3262682

[winston]

not vested

DNeX signs MoU to explore business synergy with Saudi group

by Shazni Ong

Signed a memorandum of understanding with Saudi Arabia-based Ajlan & Bros Holding Group (Abilitii).

The partnership allows the group to expand its footprint in the Middle East and Northern Africa (MENA) area.

The partnership may also lead to both parties to find opportunities in the semiconductor industry in both Malaysia and Saudi Arabia.

Source: theedgemarkets.com

https://www.theedgemarkets.com/article/ ... audi-group