KUALA LUMPUR: Coming off deep losses in the first quarter of the year, Dayang Enterprise Holdings Bhd
‘s activity levels are expected to rebound on the back of a recovery in crude oil prices.
According to Kenanga Research, the 1QFY21 core net loss of RM34.5mil was broadly within expectations against its full-year forecast of RM87.6mil and consensus’ 2021 projection of RM113mil, as 1Q is seasonally the weakest quarter.
“The deep loss incurred in 1QFY21 is suggesting that recovery trajectory will be slow and gradual.
“Nonetheless, in tandem with the current rebound in crude oil prices, topside maintenance and offshore activities are expected to pick up in the coming quarters,” it said.
Dayang has a current maintenence order book of RM2.5bil, which will be sufficient to sustain revenue visibility for the next two to three years, it added.
Kenanga kept its FY21-22 forecasts and maintained “outperform” on the stock with unchanged target price of RM1.80, pegged to 1.1x price-book value, which is close to historical mean valuations.
The target price also implies a forward price-earnings ratio of 14x.
