Bursa Malaysia Stock Price Target: DAYANG

KUALA LUMPUR: AllianceDBS Research maintained its 'buy' call on Dayang Enterprise Holdings Bhd with a target price of RM4.55 per share, due to the group's clear earnings visibility, clean balance sheet with net cash position and strong execution track record.

In a note today, AllianceDBS Research expected the pace of work for the Pan Malaysian hook-up and commissioning contracts (HCM) awarded to Dayang Enterprise last May would pick up in the coming quarters.

The research firm said it was confident that Dayang Enterprise would be able to keep up with the work orders.

"As the biggest winner of the RM10 billion Pan Malaysian HCM contracts, earnings visibility for Dayang is good with an estimated RM4 billion orderbook," said AllianceDBS.

Dayang Enterprise has deployed five vessels out of six it chartered from associate company, Perdana Petroleum Bhd, to support its enlarged HCM activities.

"With access to Perdana's fleet, we view that the group will be able to take on more contracts on top of its existing orderbook in the future," said AllianceDBS.

As at 12.04pm, Dayang Enterprise's share price shed six sen to RM3.50, with 333,000 shares changing hands.-- Bernama

September 18, 2013

DayangEnt - Higher job activities-MIDF-180913

Stock Name: DAYANG
Company Name: DAYANG ENTERPRISE HOLDINGS BHD

Research House: MIDF

Price Call: BUY

Target Price: 6.08

September 6, 2013

Dayang Enterprise Holdings Berhad - Equipping for more job activities

Stock Name: DAYANG
Company Name: DAYANG ENTERPRISE HOLDINGS BHD

Research House: MIDF

Price Call: BUY

Target Price: 6.08

May 28, 2013

And the ball keeps on rolling...

Stock Name: DAYANG
Company Name: DAYANG ENTERPRISE HOLDINGS BHD

Research House: MIDF

Price Call: BUY

Target Price: 6.08

May 22, 2013

Alas, the wait is finally over!

Stock Name: DAYANG
Company Name: DAYANG ENTERPRISE HOLDINGS BHD

Research House: MIDF

Price Call: BUY

Target Price: 6.08

May 7, 2013

HUC win

Stock Name: DAYANG
Company Name: DAYANG ENTERPRISE HOLDINGS BHD

Research House: MIDF

Price Call: BUY

Target Price: 4.41

April 18, 2013

MIDF starts Dayang with 'buy' call

Stock Name: DAYANG
Company Name: DAYANG ENTERPRISE HOLDINGS BHD

Research House: MIDF

Price Call: BUY

Target Price: 3.95

MIDF Research initiated coverage on Dayang Enterprise Holdings Bhd with a 'buy' recommendation and a target price of RM3.95 per share, citing good earnings visibility and healthy financials among reasons.

The research house also sees the oil and gas maintenance and support services firm as a key beneficiary to the RM8-10 billion (US$2.64-3.30 billion) Pan Malaysia hookup and commissioning works.

"In our earnings forecasts, we anticipate Dayang to win RM1 billion (US$329.9 million) from the Pan Malaysia hookup and commissioning works in 2013, with earnings being booked in the latter part of the year," MIDF said in a note on Thursday.

Shares of Dayang has surged 44.12 percent year-to-date. As of 0957am (0157 GMT), the counter remained unchanged at RM3.43 , while the benchmark stock index declined 0.37 percent.

March 28, 2012

DAYANG - Smooth sailing

Stock Name: DAYANG
Company Name: DAYANG ENTERPRISE HOLDINGS BHD

Research House: HWANGDBS

Price Call: BUY

Target Price: 2.70

Dayang Enterprise; Buy; RM2.07
Price Target: RM2.70; DEHB MK

Strong earnings visibility supported by RM1.4bn order book. Leveraging on robust O&G activity in 2012. Maintain Buy with RM2.70.

Source: HwangDBS Research - 28 March 2012

February 28, 2012

DAYANG - Earnings within expectations

Stock Name: DAYANG
Company Name: DAYANG ENTERPRISE HOLDINGS BHD

Research House: HWANGDBS

Price Call: BUY

Target Price: 2.70

Dayang Enterprise Holdings; Buy; RM2.05
Price Target: RM2.70; DEHB MK

4Q11 earnings within expectations. Declares 2nd interim dividend of 5sen/share. RM1.4bn order book to sustain earnings growth. Maintain Buy rating and RM2.70 TP.

Source: HwangDBS Research 28 Feb 2012

February 15, 2012

DAYANG - Clinched RM125m contract from Talisman

Stock Name: DAYANG
Company Name: DAYANG ENTERPRISE HOLDINGS BHD

Research House: HWANGDBS

Price Call: BUY

Target Price: 2.70

Dayang Enterprise; Buy; RM1.95
Price Target: RM2.70; DEHB MK

Dayang announced that it has clinched a new contract from Talisman Malaysia Limited (Talisman) for topside maintenance services expected to be worth RM125m for a primary period of 3 years with 2 extension options of 1 year each.

The contract does not come as a surprise to us as we have mentioned previously that it was bidding for maintenance jobs from Talisman. We view its latest contract positively, boosting its outstanding order book to c.RM1.5bn which is more than enough to last for the next 3 years. Including the RM85m contract extension from Shell awarded in Jan12, Dayang has already secured RM210m worth of new contracts which bode well for its prospects going forward.

We reiterate our Buy call for Dayang with RM2.70 TP, based on 15x FY12 EPS, implying 42% upside potential. We continue to favour Dayang's chances of clinching more contracts going forward as we expect the company to ride on the robust O&G activity in Malaysia by leveraging on its niche expertise in the hook-up commissioning and maintenance services.

Source: HwangDBS Research 15 Feb 2012

Wins Talisman Contract

Stock Name: DAYANG
Company Name: DAYANG ENTERPRISE HOLDINGS BHD

Research House: OSK

Price Call: BUY

Target Price: 2.70

January 19, 2012

RHBInvest Research Highlights 19th January 2012

Stock Name: UNISEM
Company Name: UNISEM (M) BHD

Research House: RHB

Price Call: HOLD

Target Price: 1.22

Stock Name: MPI
Company Name: MALAYSIAN PACIFIC INDUSTRIES

Research House: RHB

Price Call: HOLD

Target Price: 2.79

Stock Name: NOTION
Company Name: NOTION VTEC BHD

Research House: RHB

Price Call: SELL

Target Price: 1.69

Stock Name: DAYANG
Company Name: DAYANG ENTERPRISE HOLDINGS BHD

Research House: RHB

Price Call: BUY

Target Price: 2.07

Stock Name: QCAPITA
Company Name: QUILL CAPITA TRUST

Research House: RHB

Price Call: HOLD

Target Price: 1.27

19th January 2012

Top Story

Semiconductor ' Seeing the first crack of dawn Neutral (Upgraded)

Sector Update

Unisem ' Fair value raised to RM1.22 Market Perform (Upgraded)

MPI ' Fair value raised to RM2.79 Market Perform (Upgraded)

Notion ' Fair value raised to RM1.69 Underperform

- Yesterday, Linear Technology (US based IC design company) gave an upbeat outlook for the industry. This would be the third positive guidance after Broadcom and ChipMOS, and indicates a more positive tone for the industry after a parade of negative guidance last month.

- We have already factored in a weak 1Q12 for local packaging players, as there is still lack of order visibility, but we believe the industry may be on track for some recovery in 2Q12, and stronger recovery in 2H12.

- We believe the demand weakness for chips has already been priced in. Thus, we are raising our benchmark forward target P/BV from 0.6x to 0.8x for the semiconductor players. We upgrade Unisem and MPI to Market Perform (from underperform).

Corporate Highlights

Dayang ' Delivery of Dayang Topaz and extension to Dayang Zamrud's contract Outperform

News Update

- Dayang announced that it had it had taken delivery of its new workboat, Dayang Topaz yesterday. On another note the company also received a letter of award from Brunei Shell Petroleum Co on 16 Jan, extending its contract for another workboat Dayang Zamrud from 1 Mar 2012 to Oct 2016.

- We are positive on the new delivery as it bumps up the company's assets. The extension of the contract is also another positive, as it indicates that the company has performed well thus far. This will enhance its track record in Brunei and its chances for future contracts from the country. Maintain fair value of RM2.07/share and Outperform call on stock.

- Related story: Oil & Gas Sector Update - Resilient Despite Macroeconomic Uncertainties (12 Dec 2011)

Quill Capita ' Achieves a target DPU of 8.3 sen for FY11 Market Perform

Results Note

- Quill Capita's 4QFY12/11 realised net income (-14.6%, -0.6%) came in within expectations. Net property income declined mainly due to higher property repair costs incurred in 4QFY12/11. On a full-year basis, however, QC's net profit grew by 5.4% yoy. A final DPU of 4.3 sen was declared bringing total DPU for the year to 8.3 sen (FY10: 8.03 sen), in line with our estimate.

- One of QC's tenants has already signed a letter for a two-year renewal on its lease contract in Jan 2012. As this tenant occupies about 37% of the total NLA due to expire in FY12, the total leases up for renewal in 2012 is now reduced to 24% of total NLA (from 39%).

- Overall, we lift our FY12-13 EPU estimates by 0.5-2.2%. Fair value unchanged at RM1.27.

- Related story: Property ' MREITs Sector Update: A Defensive Pick for Property Exposure (5 Jan 2012)

Macro

Inflation ' Slowed To 3.0% YoY In December, As Price Pressure Eased

Economic Highlights (published 19 Jan 2012)

- The headline inflation rate slowed to 3.0% yoy in Dec, the lowest in eight months, after inching lower to +3.3% in Nov, mainly due to a moderation in the core inflation rate, on the back of easing price pressures, while food & non-alcoholic beverage prices held stable during the month.

- Going forward, we believe inflation has peaked but will likely remain sticky downward in the immediate term. As a result, we expect inflation to moderate to an average of 2.8% in 2012, from +3.2% in 2011.

- Although BNM has shifted its focus from inflation to growth, pressure for it to ease monetary policy has reduced significantly of late. However, we believe there is room for BNM to cut OPR by 25-50 basis points in 1H 2012, should global economic conditions take a turn for the worse.

January 18, 2012

Workboat Contract Extension

Stock Name: DAYANG
Company Name: DAYANG ENTERPRISE HOLDINGS BHD

Research House: OSK

Price Call: BUY

Target Price: 2.70

November 23, 2011

Dayang's 3QFY11 results exceed expectations

Stock Name: DAYANG
Company Name: DAYANG ENTERPRISE HOLDINGS BHD

Research House: RHB

Price Call: HOLD

Target Price: 1.73

Dayang Enterprise Holdings Bhd
(Nov 23, RM1.80)
Maintain market perform at RM1.81 with revised fair value of RM1.73 (from RM1.55): Core net profit for 9MFY11 of RM69.1 million was above expectations, accounting for 89% of our full-year estimate (RM77.6 million) and 82.7% of consensus estimate of RM83.6 million. Variance to our estimate was mainly due to: (i) better than expected earnings before interest and tax (Ebit) margins especially from the marine charter division; and (ii) the lower than expected interest costs for the year.

While sequential revenue increased minimally (+2.5%), better Ebit margins for both the topside maintenance (+29%) and marine charter divisions (+32.3) led to a stronger 3QFY11 net profit of RM30.3 million (+24.8%).

While there was no mention that the company had taken up the 10% private placement stake from Perdana Petroleum Bhd, we believe it is likely to be Dayang. As mentioned previously (in our sector report dated Oct 5), we believe the main driver for the tie-up is Perdana Petroleum's accommodation vessel fleet which fits in with Dayang's brownfield work (topside maintenance and hook-up and commissioning). Moreover, the company is looking to tender for up to RM5 billion jobs in FY12. Hence, quick access to assets is imperative.

We are: (i) increasing our marine charter Ebit margin to 55% (from 23%) as we were previously too conservative; and (ii) decreasing our FY11/FY12 interest costs by 30% and 47% to be in line with the company's current interest cost. The changes result in a 9.5%, 11.1% and 5.5% change in our FY11 to FY13 net profit estimates. We note that our full-year estimate of RM85 million suggests softer 4QFY11 results. But in our view this should be expected given the monsoon season.

Risks include: (i) delay in start-up of scheduled contracts; (ii) lower than expected contract margins; and (iii) a weaker than expected global economic recovery that could lead to less urgency in new contracts.

Our change in net profit estimates pushes our fair value for the stock to RM1.73 (from RM1.55 previously), based on 10 times FY12 earnings per share. Dayang is one of the most direct beneficiaries in the push to rejuvenate mature assets in Malaysia. However, a protracted slowdown in the economy could cap the sentiment towards oil and gas stocks, especially small-caps like Dayang. As such, we maintain our 'market perform' call on the stock. ' RHB Research, Nov 23

This article appeared in The Edge Financial Daily, November 24, 2011.

3QFY11: Stellar YTD results

Stock Name: DAYANG
Company Name: DAYANG ENTERPRISE HOLDINGS BHD

Research House: ECMLIBRA

Price Call: BUY

Target Price: 2.27

November 16, 2011

HDBSVR: Dayang could be potential investor in Perdana Petroleum

Stock Name: DAYANG
Company Name: DAYANG ENTERPRISE HOLDINGS BHD

Research House: HWANGDBS

Price Call: BUY

Target Price: 2.70

KUALA LUMPUR (Nov 16): Hwang DBS Vickers Research (HDBSVR) says Dayang Enterprise (Buy, RM2.70 TP) could be a potential investor in Perdana Petroleum's (Perdana) proposed private placement of up to 10% of its shares.

It said on Wednesday the price will also be fixed at a later date after obtaining relevant approvals.

'We believe that Dayang Enterprise (Buy, RM2.70 TP) could be a potential investor given that both parties have announced earlier that they are exploring potential collaboration, including Dayang acquiring a strategic stake in Perdana,' it said.

HDBSVR said if that comes true, Dayang may be able to tap on Perdana's new fleet of 13 vessels to bid for more topside maintenance and hook-up commissioning contracts going forward while Perdana may strengthen its balance sheet (net gearing of 42% as at 2Q11).

'We understand that Dayang is chartering a workboat from Perdana at the moment for its RM802 million Petronas contract secured back in February 2011,' it said.

Assuming that the Perdana shares are placed out to Dayang at yesterday's closing price of 83.5 sen, Dayang has to fork out RM37.6 million which could be paid off with its cash pile of RM188 million as at 2Q11.