Excel – http://1drv.ms/1rwWfmY
– Fair value:
– Absolute EY%:
– FY13 (EPS: 0.146) – Fair value 3.09 (Fair Value Uncertainty: HIGH)
– R4Q (EPS: 0.205) – Fair value 4.35 (Fair Value Uncertainty: LOW)
– 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.