The analyst says that this expansion would correspond with robust floating production storage and offloading (FPSO) demand in the medium term and expects revenue to increase at the same rate as its expanded capacity, by some 30% to 40% from FY2024 ending December 2024 onwards.
Maybank Research analyst Jarick Seet has maintained his “buy” call on Dyna-Mac with an unchanged target price of 40 cents as the engineering company focuses on its yard expansion plan.
According to Seet, Dyna-Mac — which is currently operating close to full utilisation — is confident of leasing additional land near its current facilities by the end of 2023, which could potentially see its capacity expand by 30% to 40%.
