Dyna-Mac - Maybank Research 2024-02-21: On The Fast Track

• Dyna-Mac (SGX:NO4), one of our SMID conviction picks, reported strong FY23 NPAT of S$28.69m, up 114% y-o-y and 39% above our of S$20.7m forecast. This was driven by a rise in project volumes and improved productivity, tighter cost control and lucrative margins for new orders won.
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Rising capacity to improve productivity, margins

• Dyna-Mac's FY23 revenue rose 32.1% y-o-y to S$385.2m while NPAT surged 114% y-o-y to S$28.7m, well above our S$20.7m forecast.
• With capacity up 60% on its new JTC lease and the acquisition of Exterran Offshore, we expect capex of S$15-25m to reconfigure its layout and lift productivity.
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• With excess capacity, we expect this to move in-house which will eventually save costs and lift overall margins.

S$300-600m of potential contracts

• Read more at SGinvestors.io.

Jarick Seet Maybank Research | https://www.maybank-ke.com.sg/ 2024-02-21 SGinvestors.io

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