DNeX's SilTerra legal settlement clears path for growth, says TA Securities
Dagang NeXchange Bhd (DNeX) has settled a long-standing legal dispute regarding its semiconductor subsidiary, SilTerra. The resolution is expected to allow the company to focus on growth in the AI and data-center sectors, leading analysts to upgrade the stock.
Why it matters
Resolving corporate litigation removes uncertainty for investors and positions the firm to capitalize on the global semiconductor demand surge.
BURSA SGX Home Highlight Make The Edge Malaysia your preferred source on Google KUALA LUMPUR (Oct 9): Dagang NeXchange Bhd (KL: DNEX ) could see renewed investor interest after settling its long-running legal dispute over semiconductor subsidiary SilTerra Malaysia Sdn Bhd, removing a major uncertainty that has weighed on the stock, according to TA Securities.
DNeX was the most actively traded stock on Bursa Malaysia on Friday morning, with 71.99 million shares changing hands, nearly three times its 12-month average daily trading volume of 24.75 million shares. The stock fell 1.5 sen or 2.86% to 51 sen, valuing the group at RM1.77 billion.
The research house said the settlement allows DNeX and its Chinese investment partner to focus on expanding SilTerra's operations and tapping growing demand for semiconductor technology driven by artificial intelligence (AI) and data-centre investments.
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