Keep watching this stock, one of the stocks pick in the watch list today. OSK raise its target price to 1.66-2.33.
Dayang is one of Malaysia’s major topside maintenance providers. Having completed more than RM1.5bn worth of projects, the company has RM700m in orders in hand, which should keep it busy over the next 3 years. Its recent acquisition of 40% in Borcos will expand its fleet to 39 vessels by 2010. The potential risks are a slowerthan-expected recovery in O&G activities, lower charter rates, its inability to secure new long-term charters for its vessels and rising operation costs. We have a potential TP of RM1.66 based on 9x FY10 earnings, and the inclusion of Borcos will raise our TP to RM2.33. We have a NOT RATED call on Dayang.
