DAYANG – Fundamental Analysis (2 May 2015)

DAYANG Analysis:-

Excel – http://1drv.ms/1C2R0PK

Notes – http://tinyurl.com/nm4z8lm

My View:-

  • Valuation:
    • Absolute EY%:
      • Trailing:
        • FY14 (EPS: 0.215) – Fair value 3.28 (Fair Value Uncertainty: MEDIUM)
        • R4Q (EPS: 0.212) – Fair value 3.23 (Fair Value Uncertainty: MEDIUM)
      • Forward:
        • FY15 (EPS: 0.244) – Fair value 3.73 (Fair Value Uncertainty: MEDIUM)
        • FY16 (EPS: 0.282) – Fair value 4.31 (Fair Value Uncertainty: LOW)
      • EPS applied to reach the current stock price (2.63): 0.172
  • 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.
  • As with the nature of business undertaken by DAYANG, the company is exposed to end-of-year monsoon season and shorter working days. As such, 4Q14 earnings were expected to be lower than that of the previous quarters.
  • DAYANG’s current orderbook is approximately RM4b, lasting through to 2018. The company’s tenderbook is approximately RM800m.
  • I will continue to hold and accumulate DAYANG.

Latest Financial – Annual Report 2014 (30 Apr 2015) http://www.bursamalaysia.com/market/listed-companies/company-announcements/4724029

At the time of writing, I owned shares of DAYANG.

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