Dancomech Holdings Berhad

$DANCO / 5276 (DANCOMECH HOLDINGS BERHAD)
Research Report by CGSI

$DANCO / 5276 (DANCOMECH HOLDINGS BERHAD)

A multi-front bullish outlook (short term).

1. Theme
This manufacturing and trading company is one of potential beneficiary from a strengthening MYR, as its trading division exposes it to purchases from overseas supplier in USD.

2. Palm oil rally
It serves the palm oil industry, a potential forerunner in the market as seen with last Friday’s impulse across plantation names. Amidst a rather red market, the strength of danco’s performance and volume last week was apparent and speaks volumes of its intention.

3. Dividend payout
At a ~5% DY consistently, it gives good safety margin to be defensive if needed

4. Technical
The consolidation had been stable over past 2 months, with a minor breakout.

$DANCO / 5276 (DANCOMECH HOLDINGS BERHAD)
Research by CSGi

@terence775 have you ever looked deeply into $DANCO / 5276 (DANCOMECH HOLDINGS BERHAD)? So far on the book looks like a consistent and stable fundamental with quite good dividend all these years despite all the downturn

DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS) : Dealings Outside Closed Period

Changes in Director's Interest (Section 219 of CA 2016) - MR AIK SWEE TONG

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - MR AIK SWEE TONG

OTHERSDANCOMECH HOLDINGS BERHAD
INCORPORATION OF A NEW SUBSIDIARY, AK MANUFACTURING SDN BHD

Quarterly rpt on consolidated results for the financial period ended 31/03/2024

General Meetings: Outcome of Meeting

Annual Report & CG Report - 2023

CIRCULAR TO SHAREHOLDERS IN RELATION TO THE PROPOSED RENEWAL OF SHAREHOLDERS' MANDATE FOR RECURRENT RELATED PARTY TRANSACTIONS OF A REVENUE OR TRADING NATURE

General Meetings: Notice of Meeting

DANCO - Notice of Book Closure

Quarterly rpt on consolidated results for the financial period ended 31/12/2023

OTHERSDancomech Holdings Berhad ("the Company") - Proposed Renewal of Shareholders' Mandate for Recurrent Related Party Transactions of a Revenue or Trading Nature ("Proposed Shareholders' Mandate")

Second Interim Dividend

$DANCO / 5276 (DANCOMECH HOLDINGS BERHAD) - Significant growth in the recent years

Since its IPO, revenue grew >3x (inorganic); Total share base also diluted by 3x; EPS decline due to depression in margin (profitability margins halved since IPO).

No visible catalyst to drive growth (top & bottom line) in the near term.

@portoftheyear
$CCK / 7035 (CCK CONSOLIDATED HOLDINGS BERHAD) - 20%
$KERJAYA / 7161 (KERJAYA PROSPEK GROUP BERHAD) - 20%
$KGB / 0151 (KELINGTON GROUP BERHAD) -20%
$SCICOM / 0099 (SCICOM (MSC) BERHAD) - 20%
$DANCO / 5276 (DANCOMECH HOLDINGS BERHAD) - 20%

Changes in Director's Interest (Section 219 of CA 2016) - MR LEE CHEN YOW

DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS) : Dealings Outside Closed Period

$DANCO / 5276 (DANCOMECH HOLDINGS BERHAD)
Research by CGSCIMB
Add (no change) – Target Price RM0.58

“Ready for a strong end to FY23F”

■ We deem 9M23 core net profit of RM15m in line at 66%/71% of our/Bloomberg consensus’ FY23F, as 4Q tends to be the strongest quarter.
■ Trading revenue growth and metal stamping revenue recovery should help Danco to post stronger qoq earnings in 4Q23F, in our view.
■ Reiterate Add, with an unchanged TP of RM0.58 (based on 10x FY24F P/E). This note marks the transfer of coverage to Lew Cheng Wei.

Analysts:
LEW Cheng Wei
chengwei.lew@cgs-cimb.com
Prem JEARAJASINGAM
prem.jearajasingam@cgs-cimb.com

Quarterly rpt on consolidated results for the financial period ended 30/09/2023

MATERIAL LITIGATIONDANCOMECH HOLDINGS BERHAD ("DANCOMECH" OR "COMPANY")
LODGEMENT OF ADJUDICATION APPLICATION ("ADJUDICATION APPLICATION")

A better second half is anticipated for Dancomech Holdings Bhd going by its encouraging revenue growth and gross profit margin improvement in the first half of financial year 2023.

$DANCO / 5276 (DANCOMECH HOLDINGS BERHAD)
Research by CGS CIMB
Add (No Change) – Target Price RM0.58

“Steady profit growth bodes well for 2H23F”

■ 1H23 core net profit came in at RM9.5m, at 41% of our and 44% of Bloomberg consensus’ FY23F, in line, as 1H tends to be the weaker half.
■ Given its encouraging revenue growth (+15.7% yoy) and improvement in gross profit margin (+1.7% pts yoy), we look forward to better 2H23F results.
■ Reiterate Add, with an unchanged TP of RM0.58 (based on 10x FY24F P/E).

Analyst:
Prem JEARAJASINGAM
prem.jearajasingam@cgs-cimb.com

DANCO - Notice of Book Closure

Quarterly rpt on consolidated results for the financial period ended 30/06/2023

First Interim Dividend

MATERIAL LITIGATIONDANCOMECH HOLDINGS BERHAD ("DANCOMECH" OR "COMPANY")
- LODGEMENT OF ADJUDICATION APPLICATION ("ADJUDICATION APPLICATION")