AllianceDBS maintains 'buy' on Dayang

Stock Name: DAYANG
Company Name: DAYANG ENTERPRISE HOLDINGS BHD

Research House: ALLIANCE

Price Call: BUY

Target Price: 4.55

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