Dalrymple Bay Infrastructure Limited

This report is an updated version of the report published on 10 January 2023 at 3:48 PM (GMT+11) AEST.

Section 1: Company Overview and Fundamentals Insights

1.1 Company Overview

Dalrymple Bay Infrastructure Limited (ASX: DBI) is engaged in delivering effective and safe terminal infrastructure and port services for producers and consumers of Australian coal exports via its foundation asset, the Dalrymple Bay Terminal (DBT).

1.2 The Key Positives, Negatives, Investment Highlights, and Risks

1.3 Top 10 Shareholders: The top 10 shareholders form ~65.05% of the total shareholding. BIP Bermuda Holdings IV Ltd. and QIC Limited hold a maximum stake in the company at ~49.45% and ~10.08%, respectively.

1.4 Key Metrics: The company’s cash cycle days stood at 29.9 days in 1HFY22 compared to 36.5 days reported in 1HFY21, depicting better liquidity position. Below is captured the trend of asset turnover ratio and debt-to-equity ratio:

Section 2: Business Updates, Financial and Operatinal Highlights

2.1 Business Updates:

2.2 Results Highlights of 1HFY22 (for the period ended 30 June 2022): The company maintained a track record of paying regular distributions to its shareholders. For 2QFY22, the company distributed 4.5675 cents per security, in line with the guidance of 18.27 cents per security for FY22. This depicts a rise of 1.5% YoY.

2.3 Diversified User Portfolio: Revenue supported by take-or-pay contracts with the top 6 Users accounting for around 90% of the current contracted tonnage

Section 3: Key Risks and Outlook:

Section 4: Stock Recommendation Summary

4.1 Price Performance and Technical Summary

4.2 Fundamental Valuation

Valuation Methodology: Price/Earnings Per Share Multiple Based Relative Valuation (Illustrative)

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels January 10, 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

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