DAYANG – Fundamental Analysis (28 Nov 2014)

DAYANG Analysis:-

Excel – http://1drv.ms/1rwWfmY

My View:-

– Fair value:
  – Absolute EY%:
    – Trailing:
      – FY13 (EPS: 0.146) – Fair value 3.09 (Fair Value Uncertainty: HIGH)
      – R4Q (EPS: 0.205) – Fair value 4.35 (Fair Value Uncertainty: LOW)
    – Forward:
      – FY14 (EPS: 0.239) – Fair value 5.06 (Fair Value Uncertainty: LOW)
      – FY15 (EPS: 0.274) – Fair value 5.8 (Fair Value Uncertainty: LOW)
    – EPS applied to reach the current stock price (2.83): 0.134
– Dayang’s current orderbook is approximately RM4.5m which may last through to 2018. The company’s tenderbook is approximately RM1b. Based on its historical tender success rate of 40-50%, we could possibly expect new order replenishment of RM400-500m by the end of this year. The bulk of the new jobs could be engineering, procurement, construction and commissioning of offshore structures. There could potentially be another RM3-4b worth of local offshore EPCC jobs up for grabs in the next two to three years.
– I am generally positive on the current developments and progress of Dayang’s HUC projects. In addition, the company is venturing into the EPCC segment of the value chain. Given the company’s history and reputation of being a conservative and risk-averse company, the EPCC venture will bear fruit in the medium to long term.
– DAYANG is currently undervalued. I am seriously considering to buy DAYANG, but I already have quite a few O&G counters in my portfolio. Thinking.…….

Latest Financial – Q3 2014 Financial Report (26 Nov 2014) http://www.bursamalaysia.com/market/listed-companies/company-announcements/1805797

At the time of writing, I did not own shares of DAYANG.

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6 thoughts on “DAYANG – Fundamental Analysis (28 Nov 2014)

    • If just considering fundamental analysis without looking at recent price performance, my choices:
      Big players – PETGAS (or alternatively GASMSIA), DIALOG, SKPETRO.
      Others – DELEUM and DAYANG

      PERISAI, WASEONG and few more are not bad, but somehow they don’t match my taste.

      For the time being, try to avoid counters that having main revenue stream from utilization of vessels, such as ICON, ARMADA. However, COASTAL is an exception because COASTAL manufacturing vessels. They have sufficient orderbook for the next few years.

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  1. Hi lcchong, i have been following your posts on dayang and was just wondering, now that the price has dropped so drastically due to oil prices, do you think it is a good time to buy this stock still? Do you see the price now reflecting its true value or its market sentiments. Appreciate any insight.

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    • Perhaps, you can wait for more stable oil prices? I think people will continue to sell down O&G counters panickedly in the next few couple days. I believe DAYANG’s fundamental is still intact.

      Personally, I think DAYANG is a good buy, but you need to have some holding power (and patience). You may also need extra bullets to average down too.

      As I shared, I have enough exposure to O&G counters in my portfolio, so I am reluctantly to buy DAYANG.

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