Dayang managing director Tengku Datuk Yusof Tengku Ahmad Shahruddin said the contract win was a significant milestone for the Dayang group to bring the company to greater heights by leveraging on its market leading expertise in topside major structural maintenance and hook-up commissioning on engineering, procurement, construction and commissioning (EPCC) services
KUALA LUMPUR: PublicInvest research has raised the target price on Dayang Enterprise Holdings Bhd
to RM1.25 from RM1.16 previously while lowering its recommendation to neutral on the lack of upsides.
The research house noted that Dayang's share price has more than doubled from the 80 sen level post-result announcements, and is up 141.5% since PublicInvest first recommended an upgrade.
It said the share price increase is mainly due to the robust performance of the 4QFY18's financial results and anticipation that the trend will continue.
"We err on the side of conservatism however, though we keep forecasts unchanged," it said.
Meanwhile, PublicInvest is positive on the memorandum of understanding between Dayang, PKNM Energy Sdn Bhd and Main Velocity Sdn Bhd for the exploration of oil and gas opportunities in Melaka.
It said it would expand the group's technical capabilities, geographical coverage as well as client portfolio.
However, PublicInvest added that it is unable to determine the impact of the collaboration given the lack of material details provided.
The research house believes Dayang will remain focused on its bread-and-butter businesses, underpinned by a solid orderbook in hand of RM3bil and tenderbook of about RM20bil.
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