DAYANG–Fundamental Analysis (3 Sep 2015)

DAYANG Analysis:-

Excel – http://1drv.ms/1KK2Rpv

My View:-

  • Valuation:
  • Absolute EY%:
  • Trailing:
    • FY14 (EPS: 0.215) – 3.532 (Uncertainty Risk: LOW)
    • R4Q (EPS: 0.185) – 3.046 (Uncertainty Risk: LOW)
  • Forward:
    • FY15 (EPS: 0.172 ± 5%) – From 2.692 to 2.976 (Uncertainty Risk: LOW)
    • FY16 (EPS: 0.207 ± 5%) – From 3.225 to 3.564 (Uncertainty Risk: LOW)
  • EPS applied to reach the current stock price (1.62): 0.099
  • FY15 Q2:
    • Although Dayang’s 2Q15 revenue dropped by -8.2%qoq and -21.3%yoy to RM174.4m, the group managed to register an increase in net profit due to better profit margin contribution for the work orders that were executed in the quarter. The lower revenue was in light of lower value of work orders received by the group’s clients.
    • Perdana Petroleum disappointed the group by registering a net loss of –RM11.7m in 2Q15, causing a loss of –RM3.7m attributable to the group’s consolidated earnings. This is due to the challenging local OSV market with demand likely to come off as O&G activities are slower compared to last year.
  • I am 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.
  • 26 Aug 2015 – Order book currently stands at RM3.8b, expected to span until 2018.
  • I will continue to hold and accumulate DAYANG.
  • Latest Financial – Q2 2015 Financial Report (25 Aug 2015) http://www.bursamalaysia.com/market/listed-companies/company-announcements/4843013

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

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    One thought on “DAYANG–Fundamental Analysis (3 Sep 2015)

    1. One other factor to consider with Dayang – it has a decided advantage in being a “crony company”. Regardless of what one might think of the people involved, as investors, we must prioritise one thing first and foremost – protecting and trying to maximise usage of our capital. With the current status quo, this company is often in an advantageous position when it comes to contracts.

      The oil & gas industry may be facing difficult times right now. But when times get better, Dayang is one of the counters I’d want to have in my portfolio. At its present price, there’s potential for at least a 50% capital gain in the future. The problem is “when” this will materialise.

      Liked by 1 person

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