Dayang gains 3.39% on Petronas Carigali contract

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KUALA LUMPUR (Dec 16): Dayang Enterprise Holdings Bhd rose 3.39% in early trade on Tuesday after the company’s unit bagged a contract from Petronas Carigali Sdn Bhd to provide brownfield services.

At 9.21am, Dayang rose 8 sen to RM2.44 with 21,600 shares done.

BIMB Securities Research has maintained its “Buy” rating on Dayang at RM2.36 with a higher target price of RM3.37 (from RM3.14) after Dayang’s subsidiary, Dayang Enterprise SB has been awarded a contract by Petronas Carigali SB for the provision of brownfield major modification work for Bardegg-2 and Baronia Enhanced Oil Recovery (EOR) development project.

In a note Tuesday, the research house said with this, it had revised its  available FY15/16 forecast higher by 7% respectively.

BIMB Securities said inclusive of this contract, Dayang’s current outstanding orderbook would stand at circa RM4.5 billion, with the HUC contracts portion to provide earnings visibility until 2018. 

“Maintain a Buy call with a revised target price of RM3.37 from RM3.14 previously based on higher FY15 EPS of 30.6sen on PER of 11x,” it said.