Friday, 22 July 2011

DYNA-MAC (Lim&Tan)

S$0.54-DYNA.SI
􀁺 The 22% price correction from the post-listing high of 69 cents represents a buying opportunity in Dyna-Mac, now an associate of Keppel Corp.

􀁺 This would have taken in the fact that new order flow has not been as “forthcoming” as expected; and yet prospects for new orders remain good given the state of the offshore industry.

􀁺 More importantly, the moratorium on drilling off Gulf Of Mexico by the Obama Administration has since been lifted.

􀁺 The proposed 2 cent first & final dividend or 3.7% yield should also help justify a BUY.

􀁺 The just-released results for ye May ’11 (+28% in Q4 to $7.6 mln / - 2.5% for full year to $24.84 mln) puts the stock on 20x historic PE.

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