Dayang Enterprise Holdings Bhd, an oil and gas upstream service provider, has secured work orders for six of its accommodation work boats (AWB), expected to bring in nearly RM58 million in revenue.
Though no contract value was announced, analysts are able to put forward an estimation based on the disclosed contract start dates, ranging from July to August 2024, and contract duration periods spanning 61 to 153 days.
Kenanga Investment Bank Bhd considers the win within expectation.
As a four-point mooring AWBs with up to 200 pax accommodation capacity could normally fetch RM80,000-100,000/day, this would amount to a revenue figure of approximately RM57.78 million, assuming an average daily charter rate (DCR) of RM90,000 and an average contract duration of 107 days.
By factoring in the upside for Dayang Enterprise’s vessels, as well as its subsidiary Perdana (not rated), analysts project that DCR improvement for financial years 2024 and 2025 will result in Earning Per Share (EPS) growth of 37% for Dayang, and EPS growth of 135% for Perdana, respectively.
After the recent sell-down, the company’s stock appears to be gaining upward momentum. Historical data sourced from the exchange shows the company’s share price hitting the highest level in the third quarter of 2024, trading at RM3.00 in July. The share dipped in the subsequent month, down to the low of RM2.37, and further dived to RM2.08 in September. From September’s low of 2.08, the counter slowly picked up and traded higher, settling at RM2.40 on Oct 7.
As at 11:38am Oct 8, Dayang Enterprise’s stock is priced at RM2.50. (Stock updates from www.bursamalaysia.com)
Kenanga Research has awarded an OUTPERFORM rating for Dayang, setting the target price at RM3.80
