Higher RM93.8m Net Profit Allows Dayang To Ride On Stronger O&G Industry Capex

Dayang Enterprise Holdings Berhad (DAYANG) delivered stronger net profit QoQ. In 4Q23, DAYANG has achieved a net  profit of RM93.8m from RM76.4m (+22.8% QoQ), on the back of higher revenue from  the completion of a few outstanding job orders despite being in the monsoon season.

Malacca Securities (MSSB), in its Technical Focus of the company today (May 3), said as of December 2023, DAYANG has an outstanding call-out contracts worth an  estimated RM1.9bn. This will provide earnings visibility going forward, coupled with  ongoing tenders with potential increases to the orderbook.

Improving margins going forward. DAYANG should see improving margins going  forward on the back of higher revised chartering rates.

Technical Outlook 

Share price has been consolidating around and last closed at RM2.60. As the  technical readings are positive, MSSB expects follow-through buying interest to be seen  in the near term, targeting RM2.75-2.80, with a LT target at RM2.90. Support is set around RM2.50-2.55, with a cut loss set around RM2.45.

DAYANG provides offshore  maintenance services. Furthermore,  DAYANG offers minor fabrication  operations, offshore hook-ups, and  commissioning and chartering of  marine vessels to the oil and gas  industry.

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