Kenanga Research started Dayang Enterprise Holdings Bhd , an oil and gas maintenance and support services firm, with an "outperform" call and target price of 4.86 ringgit per share, citing a bright growth outlook on the back of the firm's solid track record and strong cash-flow policies.
Dayang is expected to bag a large portion of the 8-10 billion ringgit rollouts from the upcoming Pan Malaysia hook-up and commissioning project due to its "sterling historical execution track record", Kenanga said in a note on Tuesday.
"Due to management's conservatism and strong cash flow management policies, Dayang currently has healthy net cash per share position of 15.7 sen as at FY12," Kenanga added.
The research house forecast a net profit of 141 million ringgit in the financial year 2013 and 178.3 million for 2014, with an expected net dividend yield of 3 percent per annum.
Shares in Dayang were up 2.01 percent against the Malaysian benchmark stock index's 0.15 percent gain.
1036 (0236 GMT)
(Reporting by Anuradha Raghu; Editing by Prateek Chatterjee)(anuradha.raghu@thomsonreuters.com)(Reuters Messaging: anuradha.raghu.thomsonreuters.com@reuters.net)
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1003 STOCKS NEWS MALAYSIA-HwangDBS raises Gas Malaysia target price
HwangDBS Vickers Research raised its target price on Gas Malaysia Berhad to 3.25 ringgit per share from 2.95 ringgit, citing stronger earnings and a bright growth outlook after Malaysia's sole supplier of natural gas to the non-power sector secured additional gas volumes.
The additional supply will provide resilient growth to Gas Malaysia and boost net earnings by 8 to 9 percent per annum for the financial years between 2013 and 2015, HwangDBS said in a note on Tuesday.
"We like Gas Malaysia for its defensive and scalable earnings, high earnings visibility under the regulated pricing mechanism, and strong growth prospects from rising gas demand in Malaysia," the research house said.
HwangDBS kept its "buy" call on the stock, adding that the firm is an attractive mid-cap play that offers a sustainable yield of 4 to 5 percent.
Shares in Gas Malaysia remained unchanged at 2.92 ringgit against the Malaysian benchmark stock index's 0.1 percent gain.
0950 (0150 GMT)
(Reporting by Anuradha Raghu; Editing by Prateek Chatterjee)(anuradha.raghu@thomsonreuters.com)(Reuters Messaging: anuradha.raghu.thomsonreuters.com@reuters.net)
