dayang

+1

Analyst call March 28

From HDBS,
Dayang Enterprise

Dayang had been delivering impressive profits with FY11 earnings up 23 per cent y-o-y to RM83.9m, largely attributed to Petronas’ RM802m topside maintenance contract secured in Feb11. Quarterly operating margins had also been outstanding at 26-36 per cent over the past five years. With RM1.4bn outstanding order book in hand, Dayang may be busy for at least another three years.

We expect Dayang to benefit from more hook-up & commissioning (HUC) and maintenance jobs next year, given that several of Petronas’ projects have taken off. Its new 200-bed workboat, Dayang Topaz, was delivered on Jan12 and may help accelerate its work progress. Contract flows remain strong and it recently secured the RM125m topside maintenance contract from Talisman on Feb12. The next big contract — Pan Malaysia HUC works worth RM5bn — will be up for grabs by the end of this year, and Dayang is among the strongest contenders. Dayang also has room to expand given its healthy balance sheet with RM136m net cash at end Dec11. It can expand its vessel fleet if it secures more contracts this year.

Dayang is a bargain currently, at only 11x FY12 EPS despite its dominance in the HUC and maintenance market. We are expecting 2-year earnings CAGR of 12 per cent, premised on its large RM1.4bn order book. Based on its historical dividend payout, we assume 10 sen dividend in FY12, which translates into an attractive 4.8 per cent yield. We reiterate our RM2.70 TP, which implies 30 per cent upside.

* These recommendations are solely the opinion of the respective research firms and not endorsed by The Malaysian Insider. The Malaysian Insider shall not be liable for any loss arising from any investment based on any recommendation, forecast or other information contained here.

kppl so late kah [You must be registered and logged in to see this image.]

phoenix777 wrote:kppl so late kah [You must be registered and logged in to see this image.]

only time I can research...when kids tido

1ka-2 ? mr kppl

wah you guys also semangat....no need sleep...
2..young ones...

nice 2 cahaya mate

just got back from office. phoenix calls me mesin

Cals wrote:nice 2 cahaya mate

just got back from office. phoenix calls me mesin

you must be in IT or advertising

kppl80 wrote:

Cals wrote:nice 2 cahaya mate

just got back from office. phoenix calls me mesin

you must be in IT or advertising

lol spot on

Cals wrote:

kppl80 wrote:

Cals wrote:nice 2 cahaya mate

just got back from office. phoenix calls me mesin

you must be in IT or advertising

lol spot on

body trained to have minimal sleep liao
but zombie

kppl80 wrote:

Cals wrote:

kppl80 wrote:

Cals wrote:nice 2 cahaya mate

just got back from office. phoenix calls me mesin

you must be in IT or advertising

lol spot on

body trained to have minimal sleep liao
but zombie