$Dyna-Mac (NO4.SG)$ Lim & Tan has a buy on Dyna-Mac with a t...
Lim & Tan has a buy on Dyna-Mac with a tp of $0.45.
Dyna-Mac stands as a prominent frontrunner amidst the ongoing supercycle in the O&G industry, poised to capitalize on the anticipated prolonged industry upswing. With a focused expertise in topside module fabrication for FPSOs, Dyna-Mac has not only clinched substantial orders but has also expanded its operational capacity to fulfill its burgeoning order book. They expect further even more contract wins, margin expansion and increased revenues and profi tability for Dyna-Mac in FY24.
With FPSO charter rates trending up and CapEx pouring in due to lack of FPSO supply, pipeline of FPSOs remain strong and they thus expect Dyna-Mac to secure additional orders in FY24. With bigger capacity and orders, they believe a margin expansion is also in place due to Dyna-Mac's fixed operainng structure. Other than enjoying the current tail winds and having a robust orderbook, Dyna-Mac also maintains a strong net cash position (c.59% of its market cap). Dyna-Mac has significant upside with its undemanding valuations at 14.3x FY24 PE.
Dyna-Macs market cap stands at $368.1mln and currently trades at 14.3x FY24 PE. Dividend yield stands at 2.3%.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
Moo Contributor
Follow me to get useful analysis, learn TA and make profitable trades.
Maximise profit 利润最大化
6558Followers
57Following
23KVisitors
Follow
bullrider_21OP : Dyna Mac had an order book totalling S$438.2mn as of Dec 2023, deliveries are scheduled into FY2025.
cowpehcowmoo : Looks like we are using the same valuation formula but Lim's growth rate is probably a little aggressive at 14 whereas I am using 12. Reason for my lower growth rate is due to the additional yard space Dyna procured since there is limitations to the project size they could undertake, and that my forward looking PE is based on ex-warrant and assumption they could win 300-350M projects in 2024. I was hoping they win some small modules valued 80-120M by end March but it missed my target hence one of the many reasons for my sale last week
bullrider_21OP cowpehcowmoo: Ok. But Dyna-Mac looks like still have some more upside now.
cowpehcowmoo bullrider_21OP: I think so too, the company's cashflow is certainly very good and even if they do not win projects until June, I'd still give the company a buy rating as long as its <=38, its just that the risk reward is much higher now (as in higher risk vs price) hence I decided to lock in my profits as I missed that bull run at 44 last year when I decided to chase the Dragon when its above my 2023 valuation
♤方展博♤ : The O&G slump since 2009. 15 years on. The supercycle is due.
天下無敌 :
