How much is DNEX (4456) DAGANG NEXCHANGE BHD worth?
1. 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-outline-nearly-rm1bil-turnaround-plans-silterra
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
At current price of RM0.5, DNex is more than 3 times below its fair value.
2. Keep in mind that Silterra must be held majority by Malaysian. This would mean that Dnex must also be majority owned by Malaysian.
Based on the 2020 Annual Report, it would be easy for foreigners to accumulate in big portions. Thus, likely that the insiders or Local Institution will accumulate to ensure that DNex is 50.1% held by locals.
https://klse.i3investor.com/blogs/GLam/2021-02-16-story-h1541112318-How_much_is_DNEX_worth.jsp
