RHB Research downgrades Dayang Enterprise to Neutral

KUALA LUMPUR: RHB Research has downgraded Dayang Enterprise, whose share price has rallied in recent weeks, to Neutral unless it secures a higher-than-expected contract value soon.
The
research house said on Wednesday Dayang Enterprise secured a RM2.0bil
contract from Sarawak Shell and Sabah Shell Petroleum Company to
provide hook-up, commissioning and topside maintenance service.
RHB Research said the recent contract meant Dayang had secured about RM2.3bil worth of contracts year-to-date from the Pan-Malaysia hook-up and commissioning (HUC) tender.
“We make no change to our earnings forecast, as we have already imputed new RM2.5bil worth of contract wins for FY14,” it said.
The
research house noted there were contracts which had not been awarded in
the Pan-Malaysia HUC tender and Dayang was understood to be eyeing
another contract win.
“While we are encouraged with the positive
news, we believe that there could be weakness in the shares in the
short term but we advocate investors to accumulate the shares on
weakness,” it said.