- Dyna-Mac (SGX:NO4) reported strong 1H23 revenue growth of 47% y-o-y to S$182.3m and NPAT growth of 319% to S$10.2m, with gross margins expanding to 13.5% from 10.1%, beating our and the street’s estimates, as it truly benefited from the upcycle.
- - Read this at SGinvestors.io -
- We remain confident of Dyna-Mac’s outlook and raise FY23/24E PATMI estimates by 12% and 8%.
Stronger 2H23E – S$542.7m order book
- Dyna-Mac's gross margin also rose to 13.5% in 1H23 from 10.51% in 1H22 and we expect continue gains on better utilisation as well as improved pricing of contracts.
- - Read this at SGinvestors.io -
New land expected to expand capacity by 30-40%
- Management is pursuing a JTC lease for a piece of land along Gul road for which it was granted a temporary occupation licence for the purpose of soil investigation. This corresponds with the robust FPSO demand in the medium term. The new piece of land will provide additional fabrication capacity for current and future projects such as carbon capture and storage, and exotic piping for hydrogen/ammonia.
- We expect Dyna-Mac's yard capacity to grow by 30-40% by the end of 2023.
Seeking recurring revenue M&A – net cash S$128.5m
- Read more at SGinvestors.io.
