- Dyna-Mac (SGX:NO4) posted another strong set of results in its 1Q23 business update, beating consensus estimates. Gross profit more than doubled to S$11.6m on the back of a 29.3% y-o-y increase in revenue to S$87.3m and improved profit margin.
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- We expect Dyna-Mac's results to continue to improve in the coming quarters, backed by management’s strong execution ability and the FPSO upcycle.
Long-term fundamentals for the offshore O&G industry remain sound
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- A significant part of this investment is expected to be directed into offshore projects. As such, Dyna-Mac is expected to enjoy sustained demand for its offshore product offerings, and has an attractive long-term growth profile.
- We also look favourably upon Dyna-Mac’s ability to secure new orders; on 11 May 2023, Dyna-Mac's announced that it had secured several firm contracts worth S$270m from repeat customers, bringing its net order book to S$608.1m, with deliveries stretching into 2025.
Staying niche and differentiated
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