Dayang Enterprise announced 3Q results. Cumulative profit of Rm 100+ millions. Earning per share shot up to 9+sen. Declaring single tier interim dividend Rm0.015.
Target price going to be raised to Rm1.50 now? Now trading at Rm1.28. Recent intraday high is Rm1.30.
Dayang Enterprise Holdings - How Dayang Got Its Groove Back Date: 2022-11-21 Firm: KENANGA Stock: DAYANG Price Target: 1.70 Price Call: BUY Last Price: 1.34 Upside/Downside: +0.36 (26.87%) DAYANG’s 9MFY22 results blew expectations away, thanks to higher work orders at its offshore maintenance coupled with stronger vessel utilisation. Looking ahead, we expect call-ups on work orders to escalate in tandem with the overall recovery in activity levels. We raise our FY22F/FY23F earnings by 36%/28%, lift our TP by 31% to RM1.70 (from RM1.30) and maintain our OUTPERFORM call.
Earnings well exceeded expectations. DAYANG’s 9MFY22 core net profit of RM111m blew expectations away. The number already surpassed our full-year forecast by 28%, and the full-year consensus estimates by 20%. The variance against our forecast came largely from higher work orders at its offshore topside maintenance (TMS), as well as strong vessel utilisation at its marine charter division.
Strongest set of earnings since the pandemic. 9MFY22 saw a YoY turnaround from losses, driven by the resurgence of demand for its offshore TMS work orders, while vessel utilisation for its marine charter has also surged up to 57%, versus 46% last year.
Outlook continues improving. While we may see seasonally weaker earnings for the upcoming two quarters due to the monsoon, we believe overall outlook for 2023 will continue improving from this year – premised on increasing demand for work orders leading to possible rate revisions, with activities likely to continue at an elevated level. This is further backed by DAYANG’s current order book of RM1.6b, which should provide ~2 years of revenue visibility.
Forecasts. Post results, we raise our FY22F/FY23F earnings by 36%/28%, to account for the stronger work orders from offshore TMS, as well as the stronger vessel utilisation for its marine charter.
Maintain OUTPERFORM. Following the earnings upgrade, our TP is also raised to RM1.70 (from RM1.30 previously), pegged to 15x PER on FY23F EPS, which is at a 25% discount versus the average valuation of offshore maintenance peers back in 2014 (being the last year in which Brent crude was trading above USD100/barrel, prior to the recent rally). A discount is applied versus valuations from the previous oil upcycle due to current business climate being much more demanding as clients currently are much more prudent in spending unlike the yesteryears. There is no change to our TP based on its 3- star ESG rating as appraised by us (see Page 4).
Overall, we like DAYANG given: (i) it is a beneficiary of the rising demand for offshore maintenance works in the coming few years, as guided in Petronas’ Activity Outlook, (ii) its market leading position within the offshore maintenance space with the highest market share as competitors are thinning out, and (iii) its improving balance sheet which is expected to turn into a net-cash position in the coming 1-2 years.
Risks to our call include: (i) a sharp decline in oil demand and prices if the global economy slips into a recession, (ii) non-renewal of licenses issued by oil majors, and (iii) the entrance of aggressive new players.
CNBC in an interview that Goldman plans to "stick to our guns" with a forecast for $110-a-barrel Brent. That represents more than 30% upside from the current level of around $83.
On 7th December EPF sold down to below 5% and then started buying & now it's a substantial holder 5.36% (as of today). What's the game? Any reading on this?
Dayang has been awarded a contract amendment and extension to provide offshore maintenance, construction and modification services from Petronas Carigali Sdn Bhd from Sept 20, 2022 to Dec 31, 2023.
It did not disclose the value of the contract, clinched via its wholly-owned subsidiary Dayang Enterprise Sdn Bhd, as it is based on work orders issued by Petronas Carigali throughout the extended contract duration
DAYANG ENTERPRISE HOLDINGS BERHAD Particulars of Substantial Securities Holder
Name FIL ASIA HOLDINGS PTE. LIMITED Address 8 Marina View #35-06, Asia Square Tower 1, 018960 Singapore. Company No. 200823601K Nationality/Country of incorporation Singapore Descriptions (Class) Ordinary Shares Name of registered holder Please refer to Remarks Address of registered holder BROWN BROS HARRIMN LTD LUX (C) 80, Route D'Esch, L-1470 Luxembourg JP MORGAN, BOURNEMOUTH (C) 1 Chaseside, Bournemouth, Dorset BH7 7DA England POHJOLA BANK PLC (C) Teollisuuskatu 1b, 00510, Helsinki Date of cessation 22 Dec 2022 No of securities disposed 58,600,100 Circumstances by reason of which a person ceases to be a substantial shareholder The change was due to the change in organization structure of subsidiaries under FIL Limited Nature of interest Deemed Interest
Date of notice 27 Dec 2022 Date notice received by Listed Issuer 05 Jan 2023
Haha a bit strange loh … from Singapore changed to Bermuda :
Notice of Interest Sub. S-hldr (Section 137 of CA 2016)
DAYANG ENTERPRISE HOLDINGS BERHAD Particulars of Substantial Securities Holder
Name FIL FINANCIAL SERVICES HOLDINGS LIMITED Address Pembroke Hall 42 Crow Lane Pembroke HM 19 Bermuda. Company No. 202201792 Nationality/Country of incorporation Bermuda Descriptions (Class) Ordinary Shares Name of registered holder Please refer to Remarks Address of registered holder BROWN BROS HARRIMN LTD LUX (C) 80, Route D'Esch, L-1470 Luxembourg JP MORGAN, BOURNEMOUTH (C) 1 Chaseside, Bournemouth, Dorset BH7 7DA England POHJOLA BANK PLC (C) Teollisuuskatu 1b, 00510, Helsinki Date interest acquired & no of securities acquired
Date interest acquired 22 Dec 2022 No of securities 58,600,100 Circumstances by reason of which Securities Holder has interest The change was due to the change in organization structure of subsidiaries under FIL Limited Nature of interest Deemed Interest
Total no of securities after change
Direct (units) 0 Direct (%) 0 Indirect/deemed interest (units) 58,600,100 Indirect/deemed interest (%) 5.061 Date of notice 27 Dec 2022 Date notice received by Listed Issuer 05 Jan 2023
Haha just a ah Boyy Pretender Moneymaker..Shouting Rocket Up .. even Hib is down 1 sen …
Stock: [TSH]: TSH RESOURCES BHD 1 day ago | Report Abuse
Those 2 fellas try scare people from TSH/Hib/Dayang - all rocket Clearly nobody care their BS kikiki P/s: my post just want remind others - ignore crazy mike/SeeResearch also
Haha see this ah Boyy Pretender Moneymaker is a Tin Kosong .. earlier used No One , now used Nobody , is lack of Confidence n blowing like a KON … no wander is No Kuku dan Bola to join the competition:
1) She knew how OTB n TanDavid Team work methods.. What ever go Up shall go Down finally…that’s why She is following to be Pretending a Good ah Boyy… reverse she is Promoting stock with Big Head shouting Limit Up as in Hib .. stucked Deep is still shouting Hib here ..
2) She is following me to post opposite view in Insas … as usual only Tin Kosong , posted without facts n figures. Lucky I didn’t talk to her …
3.) She will copy n paste , then own deleted posts … is Loss until mentally disorder to get attention…
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Posted by MoneyMakers > 11 hours ago | Report Abuse Aiyaa crazy mike everyone here alrdy know/see u crazy Nobody care/believe ur BS story alrdy
Stock: [TSH]: TSH RESOURCES BHD 1 day ago | Report Abuse
Those 2 fellas try scare people from TSH/Hib/Dayang - all rocket Clearly nobody care their BS kikiki P/s: my post just want remind others - ignore crazy mike/SeeResearch also
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
hng33
18,741 posts
Posted by hng33 > 2 months ago | Report Abuse
Foreign fund is buying.