KUALA LUMPUR: PulicInvest Research is positive on Dayang Enterprise Holdings Bhd
's five-year contract from Murphy Sarawak oil Co Ltd and Murphy Sabah Oil Co Ltd for the Pan Malaysia Maintenance, Construction and Modification project.
"We are positive on this development as it evidences Dayang’s capabilities as a brownfield services specialist which always placed them in a good position," it said.
However, the research house is keeping its forecast on Dayang unchanged as it had already included this contract in its orderbook replenishment target for the year.
It estimated the value of the contract at between RM500mil to RM1bil with a conservative profit margin of the mid-to-high single digits.
"Dayang’s earnings outlook for this year remains positive, leveraging on its balance orderbook in hand at estimated of more than RM2.0bn to last until 2023," it said.
PublicInvest maintained a neutral rating on the stcok given its share price has reached its target of 70 sen.
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