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.
Above is an excerpt from a report by Maybank Research. Clients of Maybank Securities may be the first to access the full PDF report @ https://www.maybanktrade.com.sg/.
