Dayang Enterprise Holdings has retained BUY calls from RHB Research, HLIB and CIMB Securities, although RHB cut its target price to RM1.78 from RM2.13 while HLIB kept its RM2.20 target and CIMB maintained RM2.05. The analysts said weaker earnings were largely due to delayed maintenance activities rather than a structural deterioration, with recovery potential emerging from FY27.
Dayang’s 2QFY26 revenue fell 39.7% year-on-year to RM161.2 million as oil majors delayed topside maintenance work and vessel utilisation remained subdued. Core net profit also fell 42.7% year-on-year to RM32.7 million, although it improved 41.8% quarter-on-quarter as vessel utilisation recovered to 58% following the post-monsoon period.
RHB said the weakness was mainly timing-related, with the group’s RM4.7 billion outstanding orderbook remaining intact as deferred shutdown-related maintenance could be pushed into FY27 and FY28. HLIB similarly expects earnings to improve in the second half as vessel utilisation recovers, although softer maintenance, construction and modification activity remains a headwind.
CIMB highlighted Dayang’s strong net cash position and 14 sen first-half dividend, saying further payouts could provide upside. It also pointed to potential new hook-up and commissioning and maintenance contracts, while subsidiary Perdana Petroleum is pursuing fleet renewal and regional expansion.
RHB cut its FY26 earnings forecast by 65.4%, while HLIB lowered its forecast by 20%. Still, the analysts expect deferred maintenance work, new contract wins and a recovery in upstream activity to support a stronger FY27.
As of 10.13 am, the stock price dipped 0.66% to RM 1.51.
