Dyna-Mac Holdings reported a 11.2% YoY decline in revenue to S$65.9m but a 3.9% increase in PATMI to S$9.1m in 4Q13. For FY13, revenue rose 25.1% to S$269.4m, or 104.2% of our full-year forecast. PATMI inched up by 1.1% to S$28.7m and beat our FY13 projection by 8.8%. Excluding one-off items, Dyna-Mac’s core PATMI still exceeded our expectations by 5.2%. A final DPS of S$0.02 was declared, similar to FY12 and our estimate. This also translates into a healthy dividend yield of 5.2%. Current order book for Dyna-Mac stands at ~S$324m, versus ~S$134m a year ago. Management expects 2014 to be a busy year ahead, and has a healthy tender book, which we believe will be driven largely by the FPSO sector. We maintain our BUY rating and S$0.47 fair value estimate on Dyna-Mac.

Source: OCBC Research - 26 Feb 2014