paiseh paiseh again, really not my intention. when i see more ppl asking to drop email, i start to feel very weird...something amiss. reading back, my earlier post got problem
i'm actually guessing fatcat got intel coz he purposely left his email add & intend to drop him an email.
We initiate coverage on Daya Materials Berhad (Daya) with an Outperform call and TP of RM0.28. Daya continues to focus on the O&G activities by leveraging on its new subsidiary – Daya Petroleum Ventures which will enhance its upstream and downstream activities. Key re-rating catalysts include: i) Huge outstanding order book, ii) Potential M&As and iii) Solid financial position.
Order book: RM1.6bn, Market capitalisation: RM200m. Daya ticks many boxes when it comes to the screening of potential companies to invest in. It is in the oil and gas sector, one which we continue to like given the healthy levels of spending still to come. It has an outstanding orderbook which dwarfs its current market capitalisation, for reasons unknown which we think is unjustified. Its financial position is healthy, which allows it room to gear up as and when the need arises.
M&A Angle – Acquire small, think big. We have seen M&A activity in the O&G sector increasing, with the main drivers being cost synergies, growth opportunities and to an extent, regulatory requirements. Daya is no exception, as management has indicated that the Group is in the midst of acquiring a small Malaysian company where it can enhance its market share. We do not discount the possibility of Daya being a potential M&A target as well.
Solid financial position. Daya has seen improvements in its balance sheet strength in recent times, with net gearing falling from 19.5% in FY10 to 1.8% in FY2011, putting it in a strategic position to take advantage of investment opportunities like engaging in larger acquisitions or participating in more sizeable projects due to its ability to gear up. Additionally, the Group‟s operating cash flow is healthy given the shorter cash conversion cycle to 53 days (FY2011) from 74 days (FY2012).
KC Loh Other than the tembikai & cenang RSC, any other RSC that Daya is bidding for that all you buyers know? 18/01/2013 11:08
Focus Malaysia weekly got mentioned a few with the estimated contract values, couldn't recall what are the name. They might be competing head on with Armada, MMHE & Alam
Guess the price wont keep on going uptrend every day. Gonna take a few breather here and there. Friday volume is high with roughly 35% of the volume is a Buy. Absorbing 65% of the selling pressure and close unchange at 0.215. Seems like O&G sector a good buy for 2013.
KLSE down by 23 points. 578 counters in red, 192 counters unchanged and 75 counter Green. Glad to know daya is one of the 75. However, local market does not seems good today
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
SHIRLEY12689
5 posts
Posted by SHIRLEY12689 > 2013-01-17 14:47 | Report Abuse
Please drop me an email too ... Excited :) Bcos I hold this "baby" from Oct 2012 until now