- With its positive profit alert, we continue to believe we were too conservative with Dyna-Mac (SGX:NO4)’s margins and expect 50% capacity expansion, high operating leverage and doubling of its order book to S$896m to fatten net margins.
Positive profit alert
- - Read this at SGinvestors.io -
- With its orderbook doubling to S$896m within the past year as well as its new land expansion of 50%, we expect Dyna-Mac to execute its orderbook at a faster pace.
- - Read this at SGinvestors.io -
New substantial shareholder – an interesting angle
- Hanwha Aerospace & Ocean bought Keppel (SGX:BN4)’s 24.1% stake in Dyna-Mac in May 2024 on top of 2.95% purchased previously. We believe Hanwha Ocean may be on a global expansion drive, as it looks to grow its footprint in marine energy solutions and shipbuilding. It also launched a bid for Australian shipbuilder Austal back in Apr 2024 for US$662m.
- We believe Hanwha Aerospace & Ocean should be a positive addition for Dyna-Mac.
Maintain BUY with a higher target price of S$0.62
- Read more at SGinvestors.io.
