TA Securities bullish on Serba Dinamik
KUALA LUMPUR: Serba Dinamik Holdings Bhd’s share price is expected to perform positively this year, underpinned by the group’s robust order book and earnings.
TA Securities said in a note Serba Dinamik’s Paka Service Centre (PSC) outstanding order book comprised mainly contracts from Petroliam Nasional Bhd (Petronas) as it was located near Kerteh, home to Petronas’ integrated oil and gas facilities.
Serba Dinamik’s gross margins for its maintenance, repair and operations (MRO) contracts also remain healthy at 12 to 16 per cent.
TA Securities said in order to move up the value chain, the group’s Pengerang Eco-Industrial Park (PeIP) would target the high-end market.
PeIP’s targeted completion in the fourth quarter of next year is timed to coincide with the expiry of warranty periods for Petronas’ facilities at the Refinery and Petrochemical Integrated Development project.
“Therefore, this enables Serba Dinamik to bid for MRO contracts for plant equipment.”
TA Securities has maintained its “buy” call on Serba Dinamik with a target price of RM4.91.