Dagang NeXchange Bhd (DNeX) is positioned for an earnings turnaround, driven by strengthening demand in its semiconductor and energy divisions.
The Malaysian conglomerate’s outlook has improved as its SilTerra unit capitalizes on growing interest in silicon photonics, a technology critical for high-speed data transmission in artificial intelligence infrastructure.
CIMB Securities highlighted the potential for a share price re-rating, noting that the convergence of AI-driven semiconductor demand and favorable energy market conditions provides a dual tailwind for the company.
The broker’s assessment suggests that investors may begin to value DNeX differently as these structural growth drivers materialize in the financial results.
The silicon photonics segment is increasingly viewed as a key beneficiary of the broader AI build-out, which requires efficient optical interconnects to manage data flow in data centers.
For DNeX, this represents a shift from traditional trading and logistics revenue toward higher-margin technology manufacturing, potentially altering the company’s long-term valuation profile.