HLIB is mildly positive on DNeX’s latest smart team-up
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00:00 HLIB Research is keeping its buy call on Dalgang Nexchange or Dinex after a recent news break,
00:07 but tweaked its target price ever so slightly lower to 71 cent from 72 cent previously.
00:12 This still implies a possible upside of just over 70% from its current levels.
00:17 Dinex has announced that it had entered into a JV agreement with CSI to set up a JV enterprise
00:22 to provide licenses and/or services to Chinese and international customers.
00:26 The JV also allows Dinex access to technology and solutions from China in the areas of smart
00:32 city and artificial intelligence solutions, among others.
00:36 Dinex will actually hold 60% of the China JV, while CSI will own the balance of 40%.
00:41 Recall that Dinex and Algen and Brothers had previously signed a JV agreement to carry
00:45 out systems integration in smart cities and large enterprise projects in the MENA region.
00:51 The newly formed JV agreement with CSI and collaboration agreement between both those JVs,
00:57 which are to be incorporated, marks a continuation of Dinex's venture into the MENA region by
01:02 leveraging on technology solutions from China and Algen and Brothers' access to the MENA region.
01:08 HLIB are mildly positive on this development as Dinex is actively looking for avenues to
01:13 expand its IT business by tapping into its experience and expertise in serving the public
01:19 sector in Malaysia.
01:20 Bloomberg data shows two calls on Dinex, the other being from BIMB, and both are buys.
01:25 Average target price works out to $0.64, and this is $0.225 more than its last close.
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