Maybank Securities' Jarick Seet has maintained his "buy" call and 35 cents target price on Dyna-Mac Holdings, in his 1QFY2023 earnings preview expected on May 9.

Despite the first quarter being the seasonally weakest three months, Seet, in his May 4 note, states that Dyna-Mac will report revenue that has nearly doubled to $80 million and earnings up 61% y-o-y to $3 million, as the company rides on the market upcycle.

Dyna-Mac, 24.3% held by Keppel Corp, focuses on building so-called top-side modules for rigs used by the oil and gas industry.

Citing strong industry demand, Seet expects Dyna-Mac to report an order win of more than $300 million in the near term, and another $300 million order by end of the year, which would bring its order book to a record.

Seet is also expecting better margins due to higher operating leverage and the positive supply-demand landscape placing fabricators in a good position to raise prices.

With a cash balance of $184.5 million, Seet believes Dyna-Mac might explore acquisitions and if so, a potential catalyst for the company's growth.

<span class='see_also_inread'><b>See also: <a class='gtm_see_also_1_inread' style='text-decoration: underline;' href='/capital/brokers-calls/rhb-upbeat-raffles-medicals-contract-win-providing-medical-services?utm_source=website&utm_medium=article&utm_campaign=ONPAGESEO'>RHB ‘upbeat’ on Raffles Medical’s contract win for providing medical services at Connect@Changi</a></b></span>

Dyna-Mac is now trading at an ex-cash valuation of just 5.3x current year FY2023 earnings, versus global peers' 28.6x.

Maybank Securities maintains 'buy' call on Dyna-Mac that's riding on market upcycle

VTAC proposes business combination with live streaming platform 17LIVE

Data is the new oil but is it as dirty?

'Transition credits' could sweeten deal for early retirement of coal-fired power plants: MAS, McKinsey paper

DPM Lawrence Wong appointed as GIC’s deputy chairman

Will the Rising Sun keep rising?

Trade Stocks, ETFs, Forex and Futures with Phillip Nova:

RHB ‘upbeat’ on Raffles Medical’s contract win for providing medical services at Connect@Changi

Redevelopment of Marina Square ‘decent RNAV accretion’ of 4% to 6% for UOL, says Citi

Citi ups TP while DBS keeps 'buy' call on Singtel following long-awaited divestment of loss-making Trustwave

Maybank Securities maintains 'buy' call on Dyna-Mac that's riding on market upcycle

Related News

Highlights

VTAC proposes business combination with live streaming platform 17LIVE

Related News

Dyna-Mac wins new orders worth $88 million, total orderbook hits $630.7 million

With 6.8% yield, CGS-CIMB sees downside factored in for Keppel REIT

Keppel Corp seeks name change to 'Keppel' to reflect new structure