CGS-CIMB starts coverage on Dagang NeXchange, target price RM1.60 -A+A KUALA LUMPUR (Feb 16): CGS-CIMB Research has initiated coverage on Dagang NeXchange Bhd (DNeX) at RM1.13 with an “Add” rating and target price of RM1.60.
In a note Wednesday (Feb 16), the research house said DNeX is well positioned to benefit from SilTerra’s turnaround, underpinned by on-going 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 3-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 Limited (Ping), 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,” it said.
@pang72 Steel stocks are full of debt. Could see some major cash flow issues due to receivables too. Only Press Metal and Annjoo is playable. I still favour banking and construction this year, adding to the list is 5G theme riding on the back of technology sector..
you are irrelevant, dont take credit for what other quality analyst like GerardLam has been giving quality analysis since RM0.70.
You should be ashamed for using tricks to manipulate the public to sell Dnex and buy Prestar, AYS and Leonfuat which is in a totally different ball game as Dnex.
Very obvious KYY is using Dnex to promote his share. Why? 1) He probably doesn't own Dnex in the past, so he made up "selling Dnex" even though it is a rising counter. Why not wait a bit longer and make a larger profit? 2) He is trying to imply that his counters are much better than Dnex. Look, I just sold a rising counter (Dnex) but I am still keeping these counter (these are much bettah), you should buy and hold them too!
When KYY make this kind of post you know he is trying to drive price down so he can buy at discount... his usual shaking tactics. after he has bought in he will promote aggressively so he can sell higher.
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ValueInvestor888
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Posted by ValueInvestor888 > 2022-02-16 11:13 | Report Abuse
alamak compared apple with orange...