We initiate coverage on Daya Materials Berhad (Daya) with an Outperform call and TP of RM0.28. Daya continues to focus on the O&G activities by leveraging on its new subsidiary – Daya Petroleum Ventures which will enhance its upstream and downstream activities. Key re-rating catalysts include: i) Huge outstanding order book, ii) Potential M&As and iii) Solid financial position.

Order book: RM1.6bn, Market capitalisation: RM200m. Daya ticks many boxes when it comes to the screening of potential companies to invest in. It is in the oil and gas sector, one which we continue to like given the healthy levels of spending still to come. It has an outstanding orderbook which dwarfs its current market capitalisation, for reasons unknown which we think is unjustified. Its financial position is healthy, which allows it room to gear up as and when the need arises.

M&A Angle – Acquire small, think big. We have seen M&A activity in the O&G sector increasing, with the main drivers being cost synergies, growth opportunities and to an extent, regulatory requirements. Daya is no exception, as management has indicated that the Group is in the midst of acquiring a small Malaysian company where it can enhance its market share. We do not discount the possibility of Daya being a potential M&A target as well.

Solid financial position. Daya has seen improvements in its balance sheet strength in recent times, with net gearing falling from 19.5% in FY10 to 1.8% in FY2011, putting it in a strategic position to take advantage of investment opportunities like engaging in larger acquisitions or participating in more sizeable projects due to its ability to gear up. Additionally, the Group‟s operating cash flow is healthy given the shorter cash conversion cycle to 53 days (FY2011) from 74 days (FY2012).

Source: PublicInvest Research - 17 Jan 2013

my gosh...22sens...looks like 28sens is not far off

I wish i can own Petronas Carigali shares!

bought average at 19sens..

hold since oct 2012

it is never to late to catch any boat...daya's boat has just set sail.

wow..20million shares traded...thank you the One and Only God for Your Bounty.

daya pasti berjaya!

excellent...i knew daya pasti berjaya

the osv industry is really...really rolling

another up today..still cheap

good volume today..more activity tmrw

i know who i am going to vote

very good

of course if i am offering prs as a product...i too would say malaysians are not saving enough. i would choose cimb over hwang prs solution anytime..no quibble

amedia better company than smartag

another up today..

good..good

fasten yr seat belt folks

viva la france...les miserables...adakukesah...men are naturally racist...so what...big deal....nothing new...move on....we all are racist..ok...no denying that...so let's start with something we have in common...i3investor, we trade in shares,we express our views..we genuinely want to help fellow i3 forumers and share info and tips on counters that we know with each other, we compare notes, we learn from about new things..we are selfish lot too..so what...big deal..move on yaa

buy into oil but don't gas it..i.e blow it...hence oil and gas folks.

ini counter..manyak bagus...terbaiikk

share trading..profit is tax free..and no bloody inventory and other overheads to deal with

my job pays the household bills..but my business is share trading..where i get to be my own boss..formulate trading strategy..soaking up financial data, mktg strategy,procurement strategy,do a bit of financial engineerinh..best of both world...wish had discovered bskl when i started my first job as a lowly financial officer back in 1997.

petron and yinson future financial results

anytime fellow investor...thanks for highlighting this in the forum...with so many counters in bskl..i only hunt profitable penny shares of up to rm1,so tend to overlook oil n gas related counters above rm1. When i get my bonus soon, i will add petron as a potential mid term play...but i like yinson...so..it will be good to monitor petron and future financial results.

raydalio...you got a gem here...interesting comparison with petronas. Inflation proof shares like petron is a worth to keep

make way for a new ceo..to move the company

now we know...don't we? He was planning to resign back then

smartag to move on please..dun worry so much about the customs rfid tag not performing as expected..why do we fall..so that we can learn how to pick ourself up..so..there are other areas...rail - lrt and future mrt spare parts equipment is expensive and very valuable...should look into it

my hunch was right..the customs rfid tag is not that great of a business..smartag need to diversify and pursue other areas and not too focus so much on customs rfid tag.(customs only know how to collect duty,sales tax and excise tax)...try pursue vehicle fleet management or other high value products...or talk to mydin to impose rfid tag on to their suppliers shipment or observe how wal mart did it with their chinese suppliers.

also eversendai...my source from petronas said that that technip have been awarded a few projects this year.

betul..setuju...oil and gas year!!!

buy now...if BN win penang.. will get monorail mah..guess who benefits..scomi and ijn mah

thheavy,scomi,sealink...all oil n gas related counter with good order book, making money,strong cash flow and strong mgmt team. Gem bcoz i have made money with all these stocks in 2012 and will continue for 2013. I am not a fa or ta guy...more of talking to their finance and marketing guy type of investors

i see money for scomi...but the scomi thread forum now probably have 5% useful info and 95% gibberish...dig deep folks to find the useful info.

still going at it?...amazing..

remember gents...it takes a man to pick a fight..but a bigger man to walk away.

gents...you guys are ruining yr credibility n reputation here...dun u think enough is enough?

gents...seriously,..can u guys keep it up until dawn...it will be interesting to see.

haha..sorry jumbo..couldn't help myself

gents...play nice..@i love i3..what a dynamic forum..with new words and to learn the finer art of sarcasm and poking fun at others...just like my 9 year old nephew.

thh heavy,scomi,sealink

buy and hold..sleep soundly..tabung haji will not let this company fail

also petronss project muslim procurement people will increase their pahala points as they will help tabung haji mah...big incentive to support thh mah..

buy now...u dun buy land unless u r confident to land an order or being told by petronas to increase their capacity. Petronas support local players mah...etp programme mah

petronas also going to start solar power this year..i smell competition coming..

Get the money baby

still a long way to go for smartag...keep monitoring

oh good...directors are buying...good dividend perhaps!