PETALING JAYA: Dancomech Holdings Bhd
’s earnings are expected to register an annual growth rate of 14% for the next three years driven by demand recovery in the oil and gas (O&G) sector as well as from its recent acquisitions, according to UOB Kay Hian Research.
“With the anticipated reopening of the global economy that accompanies the dispensation of Covid-19 vaccines, Dancomech is looking forward to enjoying brisk demand growth over the next couple of years arising from numerous factors such as demand recoveries from its key customers from the O&G sectors which have earlier been badly impacted by the Covid-19 pandemic and contributions from the newly-bagged subcontract at Jurong Port, ” it said in a report.
Dancomech’s earnings would also be driven from its newly-acquired 70%-owned subsidiary MTL Engineering and potential growth in order book from the upcoming water treatment and sewerage plants’ capacity expansion.
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