not vested
RHB Research maintains Buy on Dayang
KUALA LUMPUR: RHB Research has maintained its Buy call on Dayang with a lower target price of RM4.52 based on a 16 times FY15F price per earnings.
In a note on Wednesday, the research house said in light of the enlarged share base and a larger stake in Perdana, it has updated its model and take the opportunity to lower the target price to to RM4.52.
"We lift our earnings forecast marginally and reiterate BUY on Dayang, which is a local premier oil and gas service provider with an excellent track record," it said.
Dayang has placed out the first tranche of 52.1 million shares from the 82.1 million proposed private placement. It has raised RM175.6mil proceeds, which it believed will be used to buy more Perdana’s shares.
"Dayang currently owns 26.6% of Perdana’s shares, given the recent share price weakness. We trim our target price to RM4.52 from RM4.80 in light of the enlarged share base and a larger stake in Perdana," it said.
It said Dayang has been slowly accumulating Perdana’s shares during the recent market selldown and currently owns 26.6% of Perdana’s shares.
"On the EPCC bids, we gather from our channel checks that Dayang has been bidding and preparing for an EPCC job related to an enhanced oil recovery off the coast of Sarawak," it said.
Source: The Star