not vested
Dayang set to exceed expectations for 2019
KUALA LUMPUR: DAYANG ENTERPRISE HOLDINGS BHD is en route to recording one of its strongest-performing financial years, despite expectations of a seasonally weaker final quarter.
The group posted a stellar 3Q with core net profit of RM96.1mil after excluding non-recurring items, which brought 9MFY19 profit to RM144.4mil.
Both 3Q and cumulative nine-month results more than doubled from their respective periods last year.
The year-to-date result far exceeded expectations by reaching 108% of consensus full-year estimate.
It also came to 99% of Kenanga research's full-year prediction, leading to a revision of the research house's forecast earnings for FY19 and FY20. Kenanga maintained its outperform rating and raised its target price from RM2.35 from RM2.07 previously.
“Going into FY20, we believe strong demand for top side maintenance work orders could translate to an even better year earnings-wise.
“This is on top of its current group-wide debt restructuring plan, which could see further interest savings costs as well as increased competitiveness given an optimised capital structure,” it said.
It added that despite Dayang being expected to see some sequential decline in 4Q, Kenanga expects it to be a robust quarter.
“Overall, we continue to like DAYANG, being a prime beneficiary of increased Petronas upstream activities, giving it a very exciting earnings outlook moving forward.
“We are looking towards the upcoming Petronas Activity Outlook report (expected release in 1-2 months) for further assurance of jobs flow,” it said.
Source: The Star
https://www.thestar.com.my/business/bus ... s-for-2019