Dyna-Mac Holdings reported a 4.6% YoY drop in revenue to S$62.9m and a 56.6% drop in net profit to S$4.0m in 4Q14, bringing FY14 net profit to S$24.8m. However, if we were to exclude one-off items such as a S$3.8m fair value loss on derivative financial instruments, we estimate core PATMI to be about S$7.5m in the quarter and S$28.9m for the full year, in line with expectations. With a net order book of S$354m vs. S$223m in Nov last year, the group has orders with deliveries extending into 2016.

Meanwhile, a final dividend of S$0.015/share has been declared, translating to a dividend yield of about 4.3%. Pending more details from management, we maintain our BUY rating but put our fair value estimate of S$0.445 under review.

Source: OCBC Research - 25 Feb 2015