OCBC Investment Research upgraded oil and gas services firm
Dyna-Mac Holding Ltd to buy from hold and raised its
target price to S$0.45 from S$0.34, citing an increase in
production capacity and growth in its non-module business.
By 0142 GMT, shares of Dyna-Mac were 1.3 percent higher at
S$0.405, but have fallen about 4.7 percent since the start of
the year, compared to the FT ST Oil and Gas Index's 21.9 percent
Dyna-Mac plans to buy 70 percent stake in Paliy Marine
Fabricator (Guangzhou) Ltd for S$3.8 million, which could
potentially increase Dyna-Mac's maximum output by 70 percent,
"Dyna-Mac is confident of getting sufficient new orders to
fill the newly acquired yard, by leveraging on its good track
record and close working relationships with its global clients,"
The brokerage said it expects Dyna-Mac to ramp up operations
at its new yard over the next 12 months.
It is also expanding other businesses, taking on other jobs
such as turrets and land-based modules, which will help it to
diversify its product offerings and lower risk, OCBC said.
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0942 (0142 GMT)
(Reporting by Charmian Kok in Singapore;