Fellow investors, after reviewing further the Q2 23 results, there were 2 records - highest revenue & highest net profit for Q2.
Profit margin has rebounded to nominal.
Q2 revenue is RM 305.7M - this is closer to previous Q3 revenue (357.5M in 2019 & 338.3M in 2022). This implied that coming Q3 2023 revenue would potentially be a record - exceeding 357.5M. This as alluded to in the Q2 report - sustainable ... Thus given return to nominal profit margin, net profit could be nearer to RM 100M.
Also, utilization of vessels is 72% (Q2 23) - from past records, Q3 utilization would be nearer 85%.
All signs pointing to a promising Q3 results, potentially being record too.
EPF ceased as substantial shareholders in Dec22. FIL ceased as substantial shareholders in May23.
With the bright outlooks, I think new institutional Investors will accumulating Dayang at prices below 1.85. As most prediction of target price is at 1.85.
Out of 34 analyst's recommendations, 33 recommended BUY, 1 recommended HOLD. None recommend SELL
More contracts extension will be announced indicating work order for the coming year up to Dec24 will be sufficient to keep high utilisation of vessels thus good revenue.
New blanket tenders will be finalised in the next 2-3 months. Dayang being an established and good track records company, awards of new exciting contracts can be expected. In turn will bring the share prices to a next higher level. Last record high at RM3.00 was hit in Feb 2020, just months after the announcement of some contract awards.
Just one director sold 100000 shares. Three of them are father/mother/son.. They are indirect deemed interest, therefore need to do three announcements respectively.
As compared to the last above RM2 share prices at the beginning of 2020. The financial positions as at 31/12/2022 is much stronger and more impressive than that as at 31/12/2019. Loan and borrowing was about 800millions as at 31/12/2019 Whilst only about 400million as at 31/12/2022 And there was no dividend payout in 2015-2020 Whilst 2021 and 2022 had dividend payments. Therefore, there is no doubt that Dayang is now more attractive compared to the previous RM2 price level. In Jan2020 Dayang share prices achieved to close above RM2.80 Where do you think this round can we targeting ?
Yes. As stated in their most recent quarterly reports on page 23, part B3 Prospect, that;
"quite a few ongoing contracts has been extended until FYE 2024. In addition, the contract extensions were given with a moderate revision in unit rates "
Most of their contracts were extended. Some had been announced, and some more are yet to announce soon.
More importantly is that the extensions were with higher unit rates, which in term will produce higher profit margin, as shown in the recent Q2 results.
While awaiting new announcements of contract extensions, I think many analysts will still maintain recommending "BUY" .
Crude oil WTI and Brent oil prices are trending up with more than USD 2 up yesterday.
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....
lloydlim
3,967 posts
Posted by lloydlim > 2023-05-10 12:05 | Report Abuse
Let it be pang72