Perdana oil machines wil b use in MCM

Wil up back to more thn 1.00 Buy

Contract value wil base on work order Work order value wil follow oil price in future Tis 6 yrs MCM wil ensure no impairment some more

We are positive on DAYANG’s long-awaited 5+1 MCM contract win. Although the contract value is not disclosed, we believe it could range from RM1.0b to RM1.5b but with margins lower than the previous win amidst vigorous industry cost rationalisation. While maintaining the earnings estimates, we keep our OUTPERFORM call on the stock with unchanged TP of RM1.10 (implying a FY18E PER of 12.5x) pegged to 1.1x FY18E PBV.

5+1 MCM contract. Last Friday, DAYANG announced that its whollyowned subsidiary, has been awarded a contract on 20 September 2017 from PETRONAS Carigali Sdn Bhd (PCSB) for the provision of maintenance, construction and modification (MCM) services Package A (Offshore) - Sarawak Oil. The contract will commence effective 20 September 2017 for 5 years with one-year extension option at an agreed fixed schedule of rates.
Project margins could be lower. We are positive on the contract win as the five-year maintenance contract will provide earnings visibility for its bread and butter business. While the contract value is not disclosed, we believe the total firm contract value could range from RM1.0b to RM1.5b depending on the amount of work orders received. Recall that DAYANG won the RM800m top-side maintenance services contract from Petronas in February 2011 but total revenue recognised was widened to RM1.4b due to additional work scope allocated. Given the rigorous cost optimisation over these few years, the project EBIT margins could be lower, estimated at 15-20% vs its historical margins of 20-25% before the oil prices’ plunge.
Uplifting PERDANA’s suspension… Recap that DAYANG had proposed a distribution of up to 292.2m ordinary shares or c.37.5% equity stake in PERDANA by way of dividend-in-specie to the shareholders of DAYANG. While the proposal has been approved in the EGM held on 9 August, we expect the re-listing of PERDANA upon completion of the exercise in October. Meanwhile, we believe the value of the dividend share could be lower than the last traded price of RM1.54 prior to its suspension on 30 September 2015 pending approval from Securities Commission.
…followed by private placement. Post distribution of dividend-inspecie, DAYANG’s stake in PERDANA will be reduced to 60.5% and its public shareholdings spread will be increased to 20%. Furthermore, PERDANA also announced a private placement of up to 10% of the total number of issued shares, which would lower DAYANG’s stake in PERDANA to 55%. The corporate exercises are expected to be completed by 4Q17.
Maintain OUTPERFORM. Pending confirmation of work orders from PCSB, we opt to maintain our earnings forecast as we have factored in RM1.5b order-book replenishment and earnings will only contribute meaningfully in FY18. All in, we maintain OUTPERFORM call on DAYANG with unchanged TP of RM1.10 pegged to 1.1x FY18E PBV, implying FY18E PER of 12.5x. Risks to our call: (i) weaker-than-expected HUC/TMM work orders, and (ii) prolonged downturn in OSV market.
Source: Kenanga Research - 2 Oct 2017

Billion RM MCM can't move price? Place ur bet now

Not strange Not weird Jz ppl either greeded scared or confused by dividend in specise

China USA economics expands same time High demand for oil

Sabah EOR very very soon

TA target price 1.24

5+1 years value in billion

Dilution of Perdana loss

Oil is volatile not falling

TA resistance 1.24

52 weeks high 1.29

Ya MCM Greedy ppl who sell today regrets d

Not impossible Sabah EOR if announce today wil fly like North Korea ICM

Not strange Jz ppl r greedy Bt think plan cannot worked

Sabah EOR by end of tis year Now already is end of the year By next Monday already October

Recent high 1.08 when announced more than 1.10?

MCM announcement wil add on further

Announcement not today wil b tomorrow Exciting to receive Perdana share

North Sabah -> 30/100 Profit Sharing x (1-38% tax rate)

30% profit sharing 38% tax rate Where do u get tis from?

0.92 is worth 0.276

Cum Perdana share Good to get Perdana shares whn oil price goin up

Said end of September Announcement should b tis week

Flyyyyyyyyyyyyyyy

Dayang going to fly

Dayang Strong buy

Carimin fly on MCM Dayang next Buy

strong conviction on Hibiscus

Thr is a strong operator inside

Technical BUY on breakout with +20.4% potential return

Last price: RM0.99

Target price: RM1.14, RM1.24

Whn MCM n dividend announcement price hit 1.20

If Hibiscus right issue for Sabah EOR I applies for big excess

More important global oil demands n oil supplies now balance

Tis high oil prices wil last

RM5bn MCM contracts to be awarded. As opposed to earlier expectation of Modification, Construction & Maintenance (MCM) contract award by Petronas worth circa RM5bn to be awarded in 2Q17, we believe announcement of contract to be soon (in matter of weeks) as Petronas finalizes the contract split. Major beneficiaries of the contract award consist of Dayang (BUY; TP: RM 1.20), Deleum (Not Rated), Petra Energy (Not Rated) & Sapura Energy (Hold; TP: RM1.59). At this juncture, split of contract award among contractors are unknown but we believe Dayang and Sapura Energy are the contenders for the bigger portion of the contract value due to their superior operational track record.

Volume was high cos thr were lots of people who knew Habiscus is good but stil jz on standby cos Habiscus had try breakout a few times but not successful

Tis time breakout successful so lots panic buying

Don't miss it cos Sabah EOR game changer is done deal tat clear d most difficult clearance by Petronas

Absolutely no other O&G counters can beat Hibiscus upside potential

Take tp 1.06 potential gain 71% take tp 1.44 upside potential 132%

Now people playing O&G r playing

1. Oil price hit bottom already n on recovery due to OPEC n under investment

2. Oil demands increasing due to economic recovery starting w USA

3. Petronas start to award O&G projects again like MCM contracts to benefit Dayang n Perdana

4. Potential write back of impairments even

Also, there is talk in the market that there are potential maintenance contracts worth RM6bil that will be dished out by Petroliam Nasional Bhd (Petronas).



According to sources, the maintenance, construction, and modification (MCM) contracts by the national oil company have been long overdue. “There has been pre-award meeting by Petronas with five to six shortlisted candidates for MCM jobs throughout Malaysia including in Sabah and Sarawak,” a source says. These contracts are typically meant for Petronas rigs that extract oil and gas.


http://www.thestar.com.my/business/business-news/2017/09/23/oil-and-gas-shares-back-on-investors-radar/#UqEAYPscFQO3iFPy.99

Hibiscus is very good ma no debt

hibiscus 54.526 m 843.272 m 54.50 m -

http://klse.i3investor.com/servlets/forum/600132809.jsp

TA breakout precede Sabah EOR deal

Reach mineral extaction tax very high

Hibiscus is very good ma no debt

hibiscus 54.526 m 843.272 m 54.50 m -

Cos long weekend price drop a bit

Knn got Sabah EOR done deal ma scare wat

Monday sure fly again to Publc target 1.06

Dayang sure winner of MCM contract

Of course got problems lah otherwise u think their share price so low

Now people playing O&G r playing

1. Oil price hit bottom already n on recovery due to OPEC n under investment

2. Oil demands increasing due to economic recovery starting w USA

3. Petronas start to award O&G projects again like MCM contracts to benefit Dayang n Perdana

4. Potential write back of impairments even

Traders' Corner - Dayang Enterprise Holdings (DEHB MK)
Author: UOBKayHian | Publish date: Mon, 18 Sep 2017, 10:37 AM


Technical BUY on breakout with +20.4% potential return
Last price: RM0.99
Target price: RM1.14, RM1.24
Support: RM0.93
Stop-loss: RM0.925

BUY on breakout with a target price of RM1.24 and stop-loss at RM0.925. Share price is consolidating around the immediate support at RM0.93 and last Friday’s positive closing above the BBI sets a new tone for the short-term outlook. We expect DEHB to continue to move up if it penetrates the breakout level of RM1.03. The bullish bias has been established following an uptick in the DMI. We peg our targets at RM1.14 and RM1.24.

Expected Timeframe: 2 weeks to 2 months

Source: UOB Kay Hian Research - 18 Sept 2017

Knn sui ah

Petronas MCM bring O&G alive but Dayang is d one getting d biggest slice

PEnergy oso fly MCM announce any time

Target price 1.06

Public bank power!!

MCM n dividend