Serba Dinamik continues to be favoured, backed by sturdy orderbook

KUCHING: Serba Dinamik Holdings Bhd (Serba Dinamik) continues to be favoured by analysts as it is backed by a sturdy orderbook that will provide longterm earnings visibility.

Researchers with Malacca Securities Sdn Bhd (Malacca Securities) met with Serba Dinamik for an update on the group’s current operations and future plans and came away feeling re-assured of the group’s direction moving into 2020.

The research firm recapped that Serba Dinamik aims to grow their existing orderbook at currently approximately RM10 billion into RM15 billion by end-2020.

“This will be back by the tenderbook of approximately RM16 billion including renewal of existing contracts, comprising 45 per cent local contracts, while the remainder 55 per cent from overseas,” Malacca Securities said.

“We continue to like Serba Dinamik as it is one of the largest oil and gas (O&G) service equipment providers in Malaysia, backed by its sturdy orderbook comprising of dozens of jobs from local and overseas that will provide long-term earnings visibility.”

According to Malacca Securities, on the local front, the Bintulu Integrated Energy Service Hub (BIEH) that sits on 28-acre land size will support the O&G, petrochemical and power generation industries is close to 90 per cent completion.

“At the same time, the Pengerang Eco-Industrial Park and Pengerang International Commercial Centre in Johor, Malaysia is on track for completion by end-2020.

“Upon completion, this will provide services including maintenance, repair and overhaul (MRO) and inspection, repair and maintenance (IRM) to support the downstream oil, gas and petrochemical, and power generation industries under the US$27 billion RAPID project.”

In the interim, Malacca Securities noted that the corporate proposals that entails share split of every two existing ordinary shares into three shares, bonus issue on a basis of two shares for every five subdivided shares and free warrants on the basis of two free warrants for every five subdivided shares.

Therefore, the research firm maintained its ‘buy’ recommendation on Serba Dinamik with an unchanged target price of RM2.63 per share.