DAYANG 5141 DAYANG ENTERPRISE HOLDINGS BERHAD in good stead to continue its climb
Dayang Enterprise Holdings Bhd is looking good with more upside expected.
According to AmInvest Research, the counter’s buying momentum is back after it broke out of the 1-week bullish flag pattern with another white candle on April 14.
It expects a bullish bias may emerge above the RM1.44 level, with a stop-loss set at RM1.34, below the 11 Apr low.
Towards the upside, the near-term resistance level is seen at RM1.55, followed by RM1.60.
At current level, the counter has already surged some 56.5% to close at RM1.44 on April 14.
If it can indeed reach RM1.60, it will be the counter’s new high after touching a 52-week high of RM1.55 from a low of 86 sen.
With more jobs on the back of oil prices recovery, what is not to lik about Dayang?
As it is, Hong Leong Investment Bank expects Dayang's steady and strong performance to be sustained in the financial year ending Dec 31, 2023, following its latest contract win from Petronas Carigali Sdn Bhd.
Dayang on April 6 announced its fifth contract win this year.
The latest job is for the provision of an accommodation work boat for its Dayang Pertama vessel from Petronas Carigali.
HLIB believe that 2023 will be a golden year for oil and gas service providers after the elevated oil price environment for the past year.
It maintained its buy call for Dayang, with a target price of RM1.87.
Meanwhile, Public Investment Bank Bhd said the contract win proves Dayang’s ability to capitalise on the tight vessel market.
It believes that Dayang remains in a favourable position to secure contracts with better daily charter rates for its remaining vessels.
Analysts are positive over Petronas’ projected RM300 billion capex.
The national oil company’s capex spending for 2023-2027 of RM300 billion or on average RM60 billion per annum, represents a 43% increase from RM208.5 billion over the previous five years, or RM41.7 billion per annum.
The increase in capex is to cater for additional investments in the core business, clean energy and lowering emissions.
Analysts highlighted that Dayang will be one of the key beneficiaries, given the planned increase in offshore maintenance, construction and modification, and hook-up and commissioning works.
As such, it will not be surprising if the counter continue its upward trend in the near term given the positive outlook.
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