KUALA LUMPUR: Dayang Enterprise Holdings Bhd fell over 3% in early trade Tuesday after reporting a wider net loss in the second quarter ended June 30.
The oil and gas services provider fell 3.47%, or 3.5 sen to 98 sen at 9.53am. Dayang-C15 lost 33.33%, or one sen to two sen and Dayang-C17 tumbled 75%, or 1.5 sen to 0.5 sen.
Dayang’s net loss for the second quarter ended June 30, 2021 (2Q21) widened to RM21.89mil from RM985,000 a year ago.
It recorded lower revenue of RM159.7mil compared with RM170.9mil a year ago.
For the first half ended June 30 (1HFY21), the group posted a net loss of RM49.43mil, from a net profit of RM8.34mil a year ago, while revenue fell 28.94% to RM243.75mil from RM343mil.
Kenanga Research said Dayang’s 1HFY21 core net loss of RM28.5m (arrived after adjusting for unrealised forex and impairments) came in below expectations against its full-year profit forecast of RM87.6mil and consensus of RM82.5mil.
“While we are expecting Dayang to continue a sequential recovery in the upcoming quarter, we believe overall, FY21 profit may turn out weaker than FY20,” it said, adding that the year was hugely plagued by the group’s hindered ability to fulfil its work orders given the stricter movement restrictions.
“Nonetheless, as borders gradually reopen, we believe the group has now passed its inflection point, with FY22 hopefully a year of recovery. Maintain outperform, with a lower target price of RM1.20,” Kenanga said.