KUALA LUMPUR (March 7): RHB Investment Bank (RHB IB) Research has maintained its “buy” rating on Dayang Enterprise Holdings Bhd at RM2.21 with a target price (TP) of RM2.95 and a 33% upside with circa financial year 2024 (FY2024) yield.

In a note on Thursday, the research house said it is positive of Dayang’s 64%-owned Perdana Petroleum Bhd’s contract wins.

“We believe PETR’s (Perdana Petroleum) marine segment is likely to deliver stable earnings growth, backed by better utilisation and higher daily vessel charter rates.

“We continue to favour Dayang, which is a key beneficiary of an increase in upstream maintenance activities and robust OSV (offshore service vessel) demand, even while it remains relevant in the new contract life cycle,” it added.

On Wednesday, Perdana Petroleum won five contract awards — four contract extensions on three anchor handling tug supply (AHTS) vessels and one accommodation work barge, and one new AHTS contract granted by Petronas Carigali Sdn Bhd.

The value of these contracts range from RM8.3 million to RM19.8 million.

RHB IB said it was positive on these contract awards as they ensure earnings visibility for the coming quarters, adding that it was guided that the implied daily charter rates of RM33,000 to RM72,000 point to a mild improvement from that of previous contracts.

“We think that these rates are still lower than that of current spot charters which generally pencil in slightly shorter timeframes. Management still sees potential improvement in daily charter rates this year due to tight vessel supply,” it added