PETALING JAYA: Dayang Enterprise Holdings Bhd
is expected to post slightly stronger results in the financial year 2026 (FY26), with a bigger rebound projected for FY27, says Kenanga Research.
“Despite the tepid outlook in upstream services, the group still possesses a healthy order book of RM4.8bil.
“Earnings are expected to gradually recover from FY25 over the next two years, as clients typically ramp up their work orders two years after their umbrella contract awards [the majority of the packages were awarded back in the fourth quarter of FY24 (4Q24)],” it said.
Analysts noted that Dayang’s FY25 was operationally weak, but the numbers still came in ahead of expectations due to cost discipline, margin resilience and stronger finance line items.
Phillip Capital Research said FY25 core earnings declined 36% year-on-year (y-o-y) to RM193mil, but exceeded expectations at 113% of its forecast and 118% of consensus, helped by stronger margins, lower interest expense and higher interest income.
Operationally, FY25 revenue fell sharply. Phillip Capital pointed to lower revenue of RM938mil, down 36% y-o-y, reflecting a slowdown in topside maintenance services (TMS) due to fewer work orders and lower vessel utilisation (56% versus 65% in 2024).
Kenanga Research echoed this, noting that FY25 revenue declined 36%, dragged by weaker contributions from both the TMS and marine divisions amid lower work orders and reduced vessel utilisation.
Dividends were a bright spot.
Phillip Capital highlighted a seven sen dividend in 4Q25, bringing the total 2025 dividend payout to 14 sen, above its estimates.
Kenanga Research likewise said FY25 dividend per share of 14 sen exceeded expectations. It upgraded its call to “outperform”, raising its target price by 19% to RM1.90 from RM1.60 after rolling forward its valuation to FY27 and tweaking its dividend payout assumption higher.
Phillip Capital trimmed its FY26 to FY27 earnings per share (EPS) forecasts by 17%-24% after factoring in lower maintenance, construction and modification work orders, and revising vessel utilisation assumptions following the release of PETRONAS Activity Outlook 2026-28 activity guidance.
“We maintain our ‘buy’ rating and 12-month target price of RM2.01, based on updated 12 times price-to-earnings (PE) multiple on 2026 earnings.
“At the current forward PE of 10 times, we believe the near- term earnings weakness has largely been priced in, offering an attractive risk-reward profile,” it said.
