PETALING JAYA: Dayang Enterprise Holdings Bhd
’s latest work order win has fortified analysts’ positive outlook on the company’s earnings prospects.
Dayang, through its wholly owned subsidiary, DESB Marine Services Sdn Bhd, was recently awarded a charter contract from PETRONAS Carigali Sdn Bhd to provide an accommodation work boat, with its Dayang Mutiara vessel to be deployed.
The contract is expected to commence on June 1, 2026 for an initial period of 159 days with an option to extend up to 60 additional days.
Dayang provides offshore maintenance services, minor fabrication operations, offshore hook-ups and the commissioning and chartering of marine vessels.
While no contract value has been disclosed, Phillip Capital Research estimates an order value of RM13mil, based on an assumed daily charter rate (DCR) of RM83,000.
“Assuming a 25% net profit margin, the firm contract is expected to contribute RM3mil profit after tax (PAT) over its duration, representing 2% of our 2026 earnings forecasts.
“Exercising the extension option would add an additional RM1mil to PAT,” the research house said in a note.
It said the news falls within its full-year fleet utilisation projection of 60%, and is therefore making no changes to its earnings forecast.
“DCR continues to be underpinned by tight vessel supply, owing to insufficient new builds and ageing fleet,” it noted.
The research house maintained its “buy” rating on the stock with a 12-month target price of RM2.01.
“We remain positive on Dayang’s earnings prospects, underpinned by its sizeable multi-year order book, which provides long-term earnings visibility,” it said.
Phillip Capital Research noted that in addition to the Dayang Mutiara award, the group has four vessels currently engaged under long-term, three-year contracts, each with a three-year extension option.
“Dayang continues to demonstrate solid execution capabilities and a strong track record in securing repeat work from Petroliam Nasional Bhd or PETRONAS.”
Meanwhile, Hong Leong Investment Bank (HLIB) Research has lifted its earnings forecast for Dayang in financial year 2026 (FY26) by 1.4% in light of the recent contract win.
The upward revision was based on an assumed DCR of RM85,000 and full utilisation of the base 159-day tenure, including the 60-day extension, at an estimated 20% net margin.
Maintaining its “buy” rating on Dayang, it has raised its target price to RM1.94 from RM1.91, based on a price-to-earnings multiple of 11 times the FY26 earnings per share forecast.
However, the research house pointed out that the charter contract is structured on a call-out basis.
