Dyna-Mac

Dyna-Mac: Group announced a $135m order from its regular client for fabrication works of topside modules, manifolds and flare towers for two FPSOs. The works will be carried out in its Singapore and Guangzhou yards and will commence in 3Q13, contributing to its earnings for FY13. Back on 14 May after the group released its 1Q13 results, OCBC highlighted that the decline of GP margin to 24.4% (from 28.8% the previous year) was due to fewer variation orders. In addition, its order-book of $113m (as at 14 May 13) provides cover for only two quarters. Treading along thin lines, Dyna-Mac is vulnerable to any delays in the award of new contracts. However, the management is cautiously optimistic of the group's performance for FY13, citing the strong demand from the energy sector. Dyna-Mac has Bloomberg consensus 12-month TP of $0.44.