Dagang NeXchange Likely to Deliver Stronger 2H Earnings

Dow Jones
Aug 24

0214 GMT - Dagang NeXchange is expected to deliver a stronger performance in 2H, particularly in its semiconductor segment, TA Securities' Chan Mun Chun says in a note. Higher average selling prices, additional production capacity and a more favorable product mix will all contribute to the stronger performance. Demand for silicon photonics products should remain robust amid the AI and data-center boom, the analyst says. Management expects 2H semiconductor selling prices to rise 5%-10%, with new equipment progressively increasing wafer capacity, he notes. The energy segment is also set to benefit from the planned October startup of a brownfield reactivation project in Malaysia's Terengganu state, he adds. TA Securities maintains a buy rating and a 0.66 ringgit target price on Dagang NeXchange. Shares fall 2.0% to 0.50 ringgit.

 

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