Brokers' take

Dyna-Mac Holdings > Add CGS-CIMB, Aug 30 Aug 29 close: S$0.107 Target price: S$0.13

DYNA-MAC Holdings Limited's (DMHL) H1 2018 revenue of S$60 million made up 60 per cent of our full-year forecast. Its gross profit margin (GPM) of 18 per cent was below our 19 per cent estimate but higher revenue mitigated the bottom line impact. Our core net loss excludes a S$1.5 million gain from the reversal of impairment losses on PPE (property, plant and equipment) and prepayment written off in FY 2017.

DMHL was still in a net cash position of 2.6 Singapore cents per share at end-June. Management guided that the assets earmarked for sale (S$32 million), are still pending approval. This asset sale could lift DMHL's net cash position further and provide it the stability to ride out delays in order wins.