Accumulate more

Serba gearing up for more ad hoc qatar jobs should opportunity arises

Serba Dinamik Holdings Bhd
(June 7, RM2.07)
Reaffirm outperform with a target price of RM2.85: Serba Dinamik Holdings Bhd’s management issued a note of clarification on Tuesday pertaining to the isolation of Qatar by Saudi Arabia, Egypt and at least three other Arab nations.

Serba Dinamik’s group managing director/chief executive officer Datuk Dr Mohd Abdul Karim Abdullah expressed that all of its operations in Qatar remain active as the company is not impacted by the ongoing rift that is happening in the Middle East region.

Mohd Abdul Karim said Serba Dinamik is a Malaysian entity and is in no position to be involved in the ongoing complications.

We maintain that the group’s growth going forward will be underpinned by the expansion plans into the power generation sector as an asset owner, contractor and operator, and thus its bottom line would be cushioned even if there was the absence of contributions from Qatar.

As of the first quarter ended March 31, 2017 (1QFY17), Qatar is the group’s second-largest country contributor by revenue with 21.2%. For 2016, the nation made up 16% of Serba Dinamik’s total revenue.

We understand that the activities in Qatar are predominantly in operations and maintenance (O&M), and that the contributions in FY17 are expected to normalise to between 10% and 13% for FY17 with the growth of other countries’ contributions.

“We provide O&M services, which is not affected by the current matter. In fact, we are gearing up for opportunities to possibly provide our support to gas producers in Qatar, due to the vacuum of contractors from these respective countries pulling out of Qatar.

“On another note, the delivery of oil and gas (O&G), particularly LNG (liquefied natural gas) gases, will not be interrupted as there are different shipping routes that are still accessible for delivery to major buyers through Oman and Iran, namely, Japan, South Korea, India and China. Hence, our O&M services will not be affected as production is still ongoing,” Mohd Abdul Karim explained.

Assuming that the group’s Qatar operations were compromised, we would expect FY18 performance to see some effect on top line by -c 13% and earnings at -c 14%. We, however, reiterate that we do not expect the operations in Qatar to have any significant impact on the group.

We like Serba Dinamik for its engineering solutions to the O&G and power generation industries supported by its core O&M services and engineering, procurement, construction and commissioning works.

Growth prospects are from both domestic and international markets while leveraging its expertise to expand into the power generation sector as an asset owner, contractor and operator. — PublicInvest Research, June 7

Fundamentally good company will rise further...pick up now and wait for more good news.

Good price to go in and wait till 2.50

Serba Dinamik Says Qatar Crisis Won’t Affect 2017 Earnings Goal
2017-06-06 05:26:48.33 GMT


By Chong Pooi Koon
(Bloomberg) -- Malaysian engineering co. optimistic on
meeting target of 15%-20% growth in revenue and net income this
year despite crisis in Qatar, CEO Abdul Karim Abdullah says in
phone interview.

* Shares fall 8.9% as of midday break in Kuala Lumpur, biggest
intraday drop on record; up 36.7% since listing in Feb.
* Qatar generated 19% of total revenue last year, second
biggest contributor after Malaysia; also operates in Saudi
Arabia
* Co. provides operation and maintenance services to oil and
gas production platforms in Qatar
* Serba’s contracts in Qatar intact, won’t be terminated
* Existing production platforms, plants, factories related to
oil and gas industry in Qatar not expected to be jeopardized
or interrupted
* Conflict not expected to affect Qatar’s main gas buyers,
which are Japan, South Korea, India and China; logistics of
routes transporting gas to these countries also unaffected
* Co. readying itself for potential opportunity for more jobs
in Qatar as other contractors may face problems there; Serba
has advantage being Malaysian co. and not from countries
involved in conflict
* “I would like to just give words of comfort to all the
investors and shareholders,” Abdul Karim says. “There’s no
worry on Serba Dinamik,” he says. “We will maintain our
commitment and confidence that we are able to achieve what
we have projected and committed.”
* NOTE: Gulf Spat Threatens to Put Brakes on Qatar’s $335
Billion Empire {FIFW NSN OR3XU46JTSE9 <GO>}
* NOTE: Oil’s Gain Boosts Outlook for Malaysia’s Serba Dinamik
on Debut {FIFW NSN OL04D56JIJUT <GO>}

Sick counter of asia

Quarter results out?

Accumulation stage

Ure welcome nobsives

Time to pickup and accumulate at 2.10

Dividend coming?

No price stabiliser in place?

Next quarter report should be excellent again

This counter a bit laggard vis a vis oil price movment

Should move to 1.40 next week

More money to be made...stable n growing group

Dividend 3c coming?

Foreigner is coming....

This is not apple to apple comparison...serba dinamik is well cushioned via its MRO (O&M) revenue stream in which power plant maintenance is part of the revenue generator for the group.

Accumulation stage....

Buyer looks dominant.....

Ya...last week...dont know when will be announced..could be next week

Ceo acquired 100 lots at 1.16 oledi

Ceo started buying oredi

Ya sapu anything below 1.20

Hopefully foreigner can overwhelm epf disastrous disposal exercise. Wonder what's epf motive?

Pressing down price...

So many sellers queing....

Fundamentally 1.50 is a history

http://www.businessnewsasia.com/201703085235079-serba-dinamik-holdings-berhad-posts-significantly-improved-43-1-revenue-q4fy16/