$Dyna-Mac (NO4.SG)$ OCBC's Ada Lim has reiterated her 'buy' ...

OCBC's Ada Lim has reiterated her 'buy' call and 0.505 tp on Dyna-Mac.

Lim notes that although the topside module builder's share price has retraced from a recent peak of 0.44 on Aug 10, the share price has doubled year to date (YTD). Nonetheless, Lim sees further upside given a stronger-than-expected upcycle and potential catalysts ahead for Dyna-Mac, which is net-cash.

Last month, Dyna-Mac announced a partnership with fellow listed O&M player Kim Heng to use the latter's yard space to fulfill its growing order book.

By doing so, Dyna-Mac can take on more projects while minimising some volatility in terms of costs.

Dyna-Mac, Lim recalls, had already announced plans to secure additional space from JTC.

"We see these developments as a positive for Dyna-Mac to grow its top-line significantly in the coming years, given that the company is currently constrained by limited yard space and running at more than 100% of its capacity (as it is utilising partners’ yard space)," says Lim.