'Dayang Ent may bag RM3b job'

KUALA LUMPUR: Kenanga Research expects Dayang Enterprise Bhd to
secure RM3 billion contracts from the Pan Malaysia hook-up and
commissioning (HUC) project.

The research house said the
brownfield services oil and gas provider is a strong candidate for the
project, given its steady track record.

"Assuming the group bags
RM3 billion in contract wins, this will likely see it recording a net
profit of RM178.3 million and earnings per share of 32.4 sen for the
2014 financial year.

"It is also on this basis that we believe
Dayang Enterprise will see a re-rating should it secure the contract,
which could inflate its order book to RM1.17 billion from RM1.2 billion
currently," Kenanga Research said in a note yesterday.





Market talk has it that Dayang Enterprise could win a wide range of
contracts, valued between RM1.5 billion and RM4 billion, from the HUC
project, worth up to RM10 billion, for the Pan Malaysia cluster.

"We
are initiating coverage on Dayang Enterprise with an 'outperform' call,
with a target price of RM4.86," the research house added.

The
Pan Malaysia cluster refers to projects undertaken by Petroliam
Nasional Bhd and its production sharing contract partners in local
offshore waters. Bernama