- Dyna-Mac (SGX:NO4)’s 1H24 results completely smashed our expectations with 1H24 revenue and net profit S$38.8mln forming ~63% and ~108% of our FY24 target of S$410mln and S$35.9mln respectively. We were too conservative with our estimates and did not fully factor in the higher operating leverage and volume of orders which Dyna-Mac’s new yard provided.
- - Read this at SGinvestors.io -
1H24 earnings smashed our expectations.
- Dyna-Mac's Revenue for 1H24 came in at S$259.7mln, which was 26.7% above our 1H24 expectations, and net profit of S$38.8mln represented a 14.9% overall net margins and annualized ROE of 66.4%.
- - Read this at SGinvestors.io -
- We understand that Dyna-Mac now has to turn away lower margin jobs as there is an increasing need to balance current manpower, and that the focus is now to continue growing it’s topline revenue. While margins did improve significantly to ~14.9% vs industry average of about 7-8%, we understand that the main driver was due to excellent work efficiency and cost control, which CEO AC Lim has emphasized ever since he took over in 2020.
Healthy Balance Sheet & M&A opportunities.
- Read more at SGinvestors.io.
