CIMB Securities has maintained its BUY call on Dayang Enterprise Holdings Bhd with an unchanged target price of RM2.05, saying the oil and gas services provider could see earnings upside from potential new contracts in Saudi Arabia and Brunei.
The research house expects Dayang’s planned exit from its A5 Sabah Southern package to be neutral to slightly positive for earnings while new maintenance, construction and modification (MCM) wins could support a re-rating.
CIMB said Dayang is negotiating to relinquish the Sabah Southern package, which could be finalised by end-2026. The package has generated only RM24 million in revenue since commencing in 2025, or around RM1 million monthly, compared with its historical contribution of about RM5 million a month. Retaining it could become loss-making due to the overhead needed to keep operations ready.
Beyond Malaysia, Dayang is bidding for a five-year Saudi Arabia MCM contract estimated at RM1 billion covering onshore and offshore works. The company is also pursuing two Brunei projects through its 50:50 partnership with Petrokon Utama, comprising a US$250 million MCM contract and a US$50 million transportation and installation contract.
CIMB said these opportunities have not been factored into its forecasts but successful bids would mark a meaningful step in Dayang’s regional expansion and reduce its reliance on Malaysia.
The research house added that Dayang’s established workforce, yards, equipment and marine assets position it well for new MCM contracts as upstream activity recovers. The stock is trading at 8.9 times forward earnings, below its five-year average of 12 times.
As of 11.57 am, the stock price gained 0.67% to RM1.51.
