Dyna-Mac - Maybank Research 2024-09-12: Offer Of S$0.60 Per Share ~ Better To Wait & See

• Dyna-Mac (SGX:NO4) received a voluntary conditional cash offer from Hanwha Ocean SG Holdings for all the issued and paid-up ordinary shares for S$0.60 per share, conditional upon Hanwha having more than 50% of the total shareholding.
• - Read this at SGinvestors.io -

Offer is on the lower end of fair value range

• Our view is that the offer is fair but on the lower end of the fair value range. Given this is not a final offer, we think it would be better for investors to wait for a revised offer that is either closer or higher than our target price of S$0.64.
• Our confidence stems from the robust outlook for FPSOs, Dyna-Mac’s high net cash position, potential dividends and higher projected profitability in the next few years.

Outlook still positive but healthy order-book

• - Read this at SGinvestors.io -
• Gross margin actually surged to 27.6% in 1H24 from 13.5% in 1H23, which justifies our positive stance on the robust FPSO space accompanied by strong growth in revenue.
• Dyna-Mac's net orderbook remains at S$681.3m, which is sufficient for FY24E as well as for FY25E.

Credit to management and the team

• Read more at SGinvestors.io.

Jarick Seet Maybank Research | https://www.maybank-ke.com.sg/ 2024-09-12 SGinvestors.io

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