UOB Kay Hian: Dancomech's earnings to grow at CAGR of 14%

PETALING JAYA: Dancomech Holdings Bhd’s earnings is expected to register an annual growth rate of 14% for the next three years driven by demand recovery in the oil and gas (O&G) sector as well as from its recent acquisitions, according to UOB Kay Hian Research.

The research house initiated coverage on Dancomech with the expectation that the company would experience “significant growth” starting from the first half of this year.

“With the anticipated reopening of the global economy that accompanies the dispensation of Covid-19 vaccines, Dancomech is looking forward to enjoying brisk demand growth over the next couple of years arising from numerous factors such as demand recoveries from its key customers from the O&G sectors which have earlier been badly impacted by the Covid-19 pandemic and contributions from the newly-bagged subcontract at Jurong Port,” it said in a report.