There is no misleading or bullshit here, so I will put a link there for your reference. I list down only 5 reasons why Dayang Enterprise is a good proxy for Carimin Petroleum, especially for now.
1) 84% vessel utilization rate. Yup, it is 84%
How much the vessel utilization rate in March 2018? It was only 27%. Then it had increased to 70% in Jun 2018. Now the vessel utilization rate of Dayang is as high as 84%. What it means by such high vessel utilization rate? It means the worst is over for Dayang, so they had recorded very good results in second and third quarter 2018.
2) Secured multiple MCM contracts last year, NOT only one
Yes, multiple MCM contracts has secured last year. These projects are secured from Petronas Carigali and other oil & gas players in local industry. This year they will bid for the contracts worth RM600 million, both local and overseas.
3) Sustainable EPS but share price lagging behind
As you know, Carimin Petroleum had been shot up from RM0.205 to RM0.85 just in few months. And for Dayang, it has ranged from RM0.50 to RM3.90 within this 5 years. Too early to say it will return to its glory time but I’m sure that the downside risk is very very very limited now. (The important thing must say 3 times)
4) The group "firmly believe" the worst is over
“We firmly believe that 2018 will be a real turnaround for the group after experiencing poor results over the past two financial years…” You can read this statement on their latest quarter prospects. Looks like they are very confident that they will turnaround this year.
5) Improving balance sheet in next few quarters/years
Dayang's management very confident that their balance sheet will continue to improve "significantly" as the impressive financial performance in the third quarter has indirectly demonstrated the financial discipline undertaken to turn around the company.
If you missed the Carimin Petroleum, maybe Dayang is another good proxy to you. But please do your homework before buying. Please feel free to comment. Thank you for reading.
For more info, you maybe refer the analysis reports by local investment banks. Reference links as below:
https://cdn1.i3investor.com/my/files/st88k/5141_DAYANG/pt/PUBLIC%20BANK/5141_DAYANG_PUBLIC%20BANK_2018-11-26_BUY_0.95_Dayang%20Enterprise%20Holdings%20-%20Solid%203Q%20Numbers_-939104288.pdf
https://cdn1.i3investor.com/my/files/st88k/5141_DAYANG/pt/MIDF/5141_DAYANG_MIDF_2018-11-26_BUY_1.30_Dayang%20Enterprise%20Holdings%20Berhad%20-%20Earnings%20Supported%20by%20Higher%20Work%20Orders_2099893920.pdf
http://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=202752&name=EA_FR_ATTACHMENTS
https://klse.i3investor.com/blogs/ekorharimau/192473.jsp
