Posted by Choivo Capital > 2019-06-16 02:48 | Report Abuse

I love the flow of your mind.

However, thus far, i feel the crux of the matter (for me at least) have not been answered.

What is the economic edge of the company compared to their competitors?
How sustainable are the current earnings?
How probable and sustainable are the future growth?
What are the points of ruin in this investment (or is it a trade?)?

I look forward to your future articles.

Posted by Choivo Capital > 2019-06-16 02:49 | Report Abuse

Send me an email at choivocapital@gmail.com

Lets meet up sometime.

Posted by BLee > 2019-06-16 10:05 | Report Abuse

Thanks for all the good articles. I am very skeptical about OnG businessess, as the oil prices very cyclical. Those umbrella contracts, excuse me if I am wrong, are actually binding contracts on rates, but not on values?? If oil prices drop below certain values, work will be on hold without compensation for any preparation works done?? This is one of the risks?? The ?? mark is for my naive on this topic, happy trading.

Posted by Ooi Teik Bee > 2019-06-16 10:35 |

Post removed.Why?

Posted by SALAM > 2019-06-16 14:38 | Report Abuse

EPS = 12.4
PE10 = RM1.24
Can it shoot to RM1.80

Posted by probability > 2019-06-16 14:54 | Report Abuse

what a beautiful graph and table presented

even if they keep placing the cash generated on FD...earnings will explode eventually and you cant contain its price at this level.

cash is king

Posted by probability > 2019-06-16 14:54 | Report Abuse

what more when Perdana turns around

Posted by pjseow > 2019-06-16 22:03 | Report Abuse

Teoct , thanks for putting up a comprehensive business fundamentals of dayang and perdana .You have highlited the key points that Dayang profitability is a function of not only dayang 's profitability itself but also 60 % of perdana P and L. Based on the details of debt restructuring , it appears that Dayang is "burdened " with the acquisition of Perdana at relatively high cost .However , The management of Dayang had repeatedly emphasised that the acquisition is synergistic with dayang 's business .They also attributed their ability to get a big chunk of the HUC and other maintainance business due to the synergy of dayang and perdana . In the last annual report , the CEO attributed the 2018 record earnings and revenue from this synergy. With better 2019 Q1 yoy results for both Dayang and Perdana , we expect both companies to do well in 2019 .

Posted by pjseow > 2019-06-16 22:26 | Report Abuse

In the history of acquisitions, no acquisitions are perfect,some are disasters . Topglove acquired a Singaporean company but later was found to have overpaid by a few hundred millions. Supermx also acquired two companies in 2008 but later found that these 2 companies are a burden and disasters. These two companies moved on and managed it be it a good or bad acquisitions. In my opinion ,dayang is a growth company if you look at the 10 years record of dayang financials .It has grown more than 4x in terms of revenue and earnings . It also means that the growth in revenue and earnings are about 15 % per annum . Its growth in Free Cash Flow is even more impressive at a whopping 6x within 10 years . This growth in both revenue , earnings and FCF are attributes of good fundamentals of a company. The FCF is about 25 to 30 % of revenue on average . This high FCF has enabled dayang to pay off more than 700 million debts in the last 3 years . With the debt restructuring and perdana is better financial footing ,dayang should do better in the next few years premised on its more than 3 billion order book.

Posted by teoct > 2019-06-17 09:27 | Report Abuse

Thank you so much for the likes and all the kind comments - make it worth writing and sharing.

BLee, your question on payment for preparatory work - there should be payment (under engineering I think). Of course it will also depend on the amount actually spent, too small, Dayang may not claim for goodwill purposes.

During the low oil price recently, Dayang's revenue was not chicken feed, RM 730M. So even should oil price drop, there will be at least RM 700+M yearly revenue.

pjseow, yes, the insights most correct, thank you very much.

Bless you all, have a productive week ahead.

Posted by teoct > 2019-07-08 10:27 | Report Abuse

From 20 Jun 2019 to 8 Jul 2019, HLIB has raised the target price from 0.88 to 1.26 to 1.49 (all before RI/PP). What a turn of event. Welcome. But this is still short of the intrinsic value of RM 2.09 to 3.64 (Ben's formula to 2-stages DCF method+28% discount).

Have a good week all.

Posted by VenFx > 2019-07-08 10:36 | Report Abuse

Wow !
Teoct done a very details report for dayang & perdana.
Super good report prior ro their r.i.

Many thanks bro.

Posted by Unk > 2019-07-08 10:41 | Report Abuse

i really admire you, auntie venfx....you bought Eg above 1.00 and average down on year 2017.... you are truely a professional trader, lol

Can you share with me your secret of success, auntie venfx? lol


Posted by VenFx > Jan 16, 2017 1:07 PM | Report Abuse

I would pay close attention to see hiw things are evolved, frankly this is an deeply undervalued counter in my watch list still.
If everything set out well accept by the market, $1.30 - 1.50 will be on the card.

Posted by VenFx > Jun 20, 2017 11:42 PM | Report Abuse

我 储备了
持续 买进
Golden EGgs
两年,,, 一来 可以平衡成本
也可以 与 金蛋 一起 发

EGgs 的 爆发期 很可能是 2018 。

Posted by VenFx > Jul 12, 2017 7:17 AM | Report Abuse

如果 投机, 肯定不爽 。
投资的 朋友照理会默默耕耘
收割期 来临
又一春 咯


Posted by VenFx > Aug 1, 2017 7:02 PM | Report Abuse

就让 EG 接下来的业绩 来 告诉他 吧 !
没有 $1.30 以上 别出货


Posted by VenFx > Aug 1, 2017 7:09 PM | Report Abuse

还可以 乘 Eg-or 出炉时
在市场 直接买了 (理想加, 不超过 $0.33)
过后缴 $0.95 的提交,
等收 1凭单 : 1 红股 吧 !

平均每股 本钱
低到不行 :)


Posted by VenFx > Aug 1, 2017 7:17 PM | Report Abuse

怕 麻烦的,
就 买 女儿 吧
$0.450 太便宜了 :)

Posted by teoct > 2019-07-11 22:15 | Report Abuse

Had a closer look at the two IBs re-rating. While one had increased earnings (net profit) by 16% for 2019, the other earnings remains unchanged. Both their earnings are around 10 sens. But PER had been increased to 15 for one and 12 for the other.

I am still of the opinion that the profit margin used by both these IBs are low. So, there definitely is room for further er-rating to EPS greater than 15 sens for FY2019. Using their latest PER will gives RM 1.80 to RM 2.25

Happy investing.