PETALING JAYA: Analysts remain cautiously optimistic on Dayang Enterprise Holdings Bhd
despite expectations for a softer operating environment in 2026, as the offshore maintenance specialist continues to benefit from a sizeable order book, resilient margins and strong cash reserves that support higher dividend payouts.
Research houses generally viewed Dayang’s first quarter ended March 31, 2026 (1Q26) earnings as within expectations, although they noted that upstream activity remains subdued amid cautious spending by oil and gas (O&G) operators.
BIMB Research said offshore maintenance activity was still tracking assumptions outlined in the PETRONAS Activity Outlook 2026 to 2028 report, with operators continuing to defer non-critical works.
“At this juncture, we expect O&G operators to continue deferring non-critical maintenance and planned shutdowns, while prioritising low-cost production enhancement initiatives to capitalise on high oil prices,” BIMB Research said.
The research house added that this may indicate subdued earnings will continue into 2Q26.
Nonetheless, it maintained a “hold” call with an unchanged target price of RM1.85, saying downside risks were cushioned by Dayang’s “generous dividend payout”.
Kenanga Research similarly described the current fiscal year ending December 2026 (FY26) as likely to remain “a modest year” for the firm, noting that local oil producers “would not respond immediately to high oil prices due to budgeting friction”.
“Hence, we believe that the activities will only ramp up starting FY27 as the services upcycle kick starts,” it said, while maintaining an “outperform” recommendation and RM2.45 target price.
CGS International Research also expects stronger quarters ahead for Dayang after a seasonally weak start to the year, saying maintenance activity should improve following the monsoon season.
