Dyna-Mac Holdings reported a 49.5% YoY drop in revenue to S$39.8m and a 76.0% drop in net profit to S$1.7m in 1Q15. However, if we were to exclude one-off items such as a S$2.6m fair value loss on derivative financial instruments, we estimate core PATMI to be about S$4.3m in the quarter. Still, this formed only 13% of ours and the street’s full year figure, and is below expectations.

Net order book stands at about S$349m with deliveries extending into 2016. Pending more details from management, we maintain our HOLD rating but put out fair value estimate of S$0.35 under review.

Source: OCBC Research - 14 May 2015