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DNEX Eyes on the Prize: Tata Rumor Fuels Silent Accumulation?
? News Highlight: Tata Electronics is reportedly eyeing Malaysian semiconductor assets, including SilTerra under DNEX (4456). Market buzz suggests DNEX could be a key acquisition target alongside GTRONIC and Unisem. This follows Tata’s push to diversify away from China and boost OSAT capability linked to Apple’s iPhone supply chain.
The Economic Times reported on Tuesday that Tata Electronics was in talks with semiconductor players X-Fab, Dagang Nexchange Bhd (KL:DNEX) and Globetronics Technology Bhd (KL:GRONIC) to acquire fabrication or OSAT plant in Malaysia to improve its knowledge and talent base, before entering the chip assembly and packing business in India.
companies like Dagang Nexchange Bhd managed to recover upward trajectory at a pre-tax profit level on the back of ongoing margin improvements and better product mix at Silterra Malaysia Sdn Bhd.
We’ve maintained selective ‘buy’ recommendations primarily on services, like MyEG at a target price of RM1.54 and NexG at 45 sen. There is a ‘buy’ on weakness for MPI at RM22.58, ‘hold’ for Inari at RM2.23, and ‘sell’ on Unisem at RM1.60. We also maintain our ‘buy’ call on Dnex at 52 sen for now, pending further review.”
BIMB Research said it was maintaining a “neutral” call on the technology sector, emphasising the divergence between the defensive growth seen in services and the cyclical challenges facing Osat companies.
