KUALA LUMPUR (March 18): Dayang Enterprise Holdings Bhd shares fell as much as 13 sen or 7.6% so far today on profit-taking following recent substantial gains the oil and gas support services provider's share price.

Kenanga Investment Bank Bhd analyst Steven Chan said in a note today Dayang's sharp 215% share price rally in the past month could have been "overplayed".

Today, Dayang shares fell 13 sen or 7.6% to their intraday low at RM1.58.

At 3:24pm, the stock recoups a portion of its losses to trade at RM1.63. The counter was one of Bursa Malaysia's most-actively traded with a total of 48.74 million shares transacted.

Chan said Kenanga downgraded Dayang shares to underperform from outperform previously while revising the stock's target price (TP) upward to RM1.20 from 92 sen.

"While we still like the company for its outstanding management, on top of its improved outlook, especially compared to 2-3 years ago when it was incurring losses, we believe the recent share price rally could have been overplayed. Hence, we are ascribing a tactical 'UNDERPERFORM' call, advocating a 'take-profit' or 'sell-on-strength' strategy to realise gains from this recent rally.

"We have given it higher premium valuation, arriving at a higher SOP (sum of parts) TP of RM1.20 (from 92 sen previously) — implying 1x PBV (price to book value) in line with its mean valuations. Despite the rich premium, we still find it hard to justify its current share price," Tan said.