Daya ... Nov10

 

A handful of development may prove to be catalysts for the company going forward.

It started out with operations primarily in the polymer business, has always been open about wanting to branch out further upstream and downstream in the O&G business. Currently, the company is more focused on downstream activities, where it supplies catalysts and chemicals for the O&G sector among others. It also remains a market leader in the polymer business where it supplies to power cable producers.

For the first six months of FY2010, it posted a net profit of rm6.8 million from rm7.2 million as a result of higher operating expenses.

Industry observers say coming year Daya Materials will see the results of the aggressive acquisition trail it has been on for the better part of three years.

The group’s current order book stands at RM285 million and it is in the run fro another handful of projects worth a potential RM600 million.

It still has some Rm16.7 million cash in its coffers while its current debts stands at RM18.8 million and a gearing of 17.9%.

The group is also scouting for possible targets in the US, Australia and China for either acquisition or partnership.

Beside from its more traditional businesses, it is embarking on a new business, offering tank services, in an effort to further diversify its earnings base. It has signed up the world largest tank players – Stolt Nielson, Sutton, Hoyer, Eurotainer, NCHO and Tanklex and is in talks with Sinochem and Bulkhaul to secure new contracts. OFr the latter, the successful negotiations could involved in second tank service depot in Kemaman.

Another possible earnings stream is the company’s new 350 tonne crane, which Daya is negotiating to lease to a local fabricator.

Daya Materials is set to benefit from the listing of Petronas Chemicals as it will possibly train the spotlight on its suppliers. Daya Materials supplies to various companies within the Petronas Chemical group. It is well positioned to benefit from the potential of more Petronas contract awards.