Sarawak themed stocks Naim, Dayang and Perdana making their moves

Sarawak-based Naim Holdings Bhd seemed to have hit its high when it touched 97.5 sen last September.

However, the counter saw its new high of RM1.16 recently and may challenge its resistance at RM1.19, followed by RM1.35.

On May 3, Naim remained unchanged at RM1.12 but succumbed to profit taking activities, pushing the counter lower to close at RM1.09 on May 5.

In just over a year, Naim has more than doubled its share price from its 52-week low of 49 sen.

The excitement over Naim has probably got to do with the possibility of a privatisation exercise.

Naim is a property and construction player, with interests in oil and gas via Dayang Enterprise Holdings Bhd, which is involved in the maintenance, fabrication and hook-up and commissioning sphere, and Perdana Petroleum Bhd, which is in the offshore support segment.

Naim holds a 24.22% stake in Dayang, which controls a 63.67% interest in Perdana Petroleum Bhd.

Investors are also anticipating Naim to sell some of its interest in Dayang to book in extraordinary profit.

Dayang has seen its share price surging 92% to close at RM2.57 on May 5 while Perdana Petroleum was up 81%.

Already, Naim is expected to record much improved results in the first quarter ended Mar 31, 2024.

In the financial year ended Dec 31, 2023, the company posted higher net profit of RM35 million from RM24.8 million in the previous year.

However, it saw lower revenue of RM316.9 million in FY2023 versus RM368.6 million in FY2022.

Dayang’s net profit rose sixfold in the fourth quarter ended Dec 31, 2023 (4QFY2023) to RM94 million from RM12.52 million a year ago.

According to Dayang, it also saw a huge lift from reversal of impairment of RM41.7 million, revision of useful life of its vessel and forex gains of RM7.6 million.

Revenue rose 57.93% to RM351.08 million, from RM222.3 million, as it continued to see job orders despite the monsoon season, adding to the improved daily charter rates.

Naim has chartered more third-party vessels this year.

It declared a dividend of 1.5 sen per share, bringing its full-year dividend to three sen per share, unchanged from last year.

Dayang said it had outstanding estimated call-out contracts of RM1.9 billion as at December 2023.

Essentially, investors look forward to the better results coming from its subsidiary to help boost its bottomline as well, pushing the company’s share price higher.