[%pvMd%] 
Research by HLIB
Buy - TP RM3.22

"Record high quarterly performance"

Dayang reported 2Q24 core bottom line of RM129.2m, bringing 1H24’s sum to RM167.9m. The results beat our (65%) and street (67%) estimates. Core earnings jumped +58.4% YoY,+1.6x YTD, driven by skyrocketed EBIT from Offshore TMS (+76.9% YoY, +113.8% YTD) and Marine Charter (+124.9% YoY, 6x YTD), due to higher work orders being awarded from oil majors and stronger vessel utilisation, coupled with improved DCRs for both own and third-party vessels. Raise our FY24/25/26f earnings by 25%/11%/8%. Post rolling over our valuation base year to mid-FY25, we maintain BUY call with slightly higher TP of RM3.22 (from RM3.12). Our TP is based on a lowered P/E multiple of 12x (from 14x typically ascribe to OGSE names) given the sector-wide de-rating induced by Petronas’ potential capex cut.

Analyst:
Brian Chin
[%pYlu%]

$KLSE-DAYANG 
Research by HLIB
Buy - TP RM3.22

"Record high quarterly performance"

Dayang reported 2Q24 core bottom line of RM129.2m, bringing 1H24’s sum to RM167.9m. The results beat our (65%) and street (67%) estimates. Core earnings jumped +58.4% YoY,+1.6x YTD, driven by skyrocketed EBIT from Offshore TMS (+76.9% YoY, +113.8% YTD) and Marine Charter (+124.9% YoY, 6x YTD), due to higher work orders being awarded from oil majors and stronger vessel utilisation, coupled with improved DCRs for both own and third-party vessels. Raise our FY24/25/26f earnings by 25%/11%/8%. Post rolling over our valuation base year to mid-FY25, we maintain BUY call with slightly higher TP of RM3.22 (from RM3.12). Our TP is based on a lowered P/E multiple of 12x (from 14x typically ascribe to OGSE names) given the sector-wide de-rating induced by Petronas’ potential capex cut.

Analyst:
Brian Chin
brianchy@hlib.hongleong.com.my

$DAYANG / 5141 (DAYANG ENTERPRISE HOLDINGS BERHAD)