The recent crude oil price correction presented a good dip to buy in. Dayang's 4Q Y22 unsatisfactory results presented yet another excuse for weak shareholders to sell off in Mid Feb Y23. I took the opportunity to top up my holding by another 50%. Now its value moves back quickly to higher than it was before mid Feb Y23.
Fellow investors, after reviewing further the Q2 23 results, there were 2 records - highest revenue & highest net profit for Q2.
Profit margin has rebounded to nominal.
Q2 revenue is RM 305.7M - this is closer to previous Q3 revenue (357.5M in 2019 & 338.3M in 2022). This implied that coming Q3 2023 revenue would potentially be a record - exceeding 357.5M. This as alluded to in the Q2 report - sustainable ... Thus given return to nominal profit margin, net profit could be nearer to RM 100M.
Also, utilization of vessels is 72% (Q2 23) - from past records, Q3 utilization would be nearer 85%.
All signs pointing to a promising Q3 results, potentially being record too.
EPF ceased as substantial shareholders in Dec22. FIL ceased as substantial shareholders in May23.
With the bright outlooks, I think new institutional Investors will accumulating Dayang at prices below 1.85. As most prediction of target price is at 1.85.
Out of 34 analyst's recommendations, 33 recommended BUY, 1 recommended HOLD. None recommend SELL
More contracts extension will be announced indicating work order for the coming year up to Dec24 will be sufficient to keep high utilisation of vessels thus good revenue.
New blanket tenders will be finalised in the next 2-3 months. Dayang being an established and good track records company, awards of new exciting contracts can be expected. In turn will bring the share prices to a next higher level. Last record high at RM3.00 was hit in Feb 2020, just months after the announcement of some contract awards.
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....
MichelleNg
1,031 posts
Posted by MichelleNg > 2023-03-14 06:42 | Report Abuse
Take profit before become no profit.