DANCO
Dancomech Holdings Berhad
Company Background
$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.
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.
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")