Posted by LimitUp > 2021-06-08 20:30 | Report Abuse

Not all news is bad news.

Posted by OrlandoOilSemiconIoT > 2021-06-08 20:42 | Report Abuse

Tis is a precursor to imminent intervention by d powerful

Posted by nuilam hali > 2021-06-08 20:55 | Report Abuse

Malaysian oil and gas (O&G) services giant Serba Dinamik Holdings Bhd remains strong with good growth prospects for the coming years despite facing a very challenging market, an industry observer said.

The observer told Bernama that the company also played an important role in the industry and many of its services are considered critical to the operations of various O&G industry players in the international markets.

The observer said any disruption to Serba Dinamik’s services, not only to local customers but also in international markets, could affect many O&G project operations around the world.

This is evidenced by the company’s biggest assets which are its vast experience and strong presence in 20 countries supported by a workforce of 2,000 employees across all segments of its operations with a vendor and supplier base of 770 companies.

The observer said not many Bumiputera companies have achieved success in the highly competitive O&G industry in such a short period as Serba Dinamik.

Last week, Serba Dinamik was shaken by news on issues related to the audit of its 2020 financial report by external auditor KPMG.

An internal source of Serba Dinamik said the company remained fully focused on its operations and is very positive about its future growth prospects.

“Despite facing numerous market challenges, the company’s fundamentals and prospects remain intact. Serba Dinamik’s business and services fundamentals are still strong. We are committed to the continuity of the company’s business operations. The support from our customers and suppliers are very encouraging. In fact, it is growing,” the source said.

The company was founded in 1993 by Datuk Dr Mohd Abdul Karim Abdullah with its first service centre in Bintulu, Sarawak providing maintenance, repair and overhaul (MRO) services for rotary equipment.

It grew rapidly over the next two decades and was listed on the Main Market of Bursa Malaysia in 2017.

The source said Serba Dinamik has earned the trust and respect of other industry players besides improving its performance in terms of operating economics and services price that is expected to lead to more significant business opportunities, especially growth from other sectors such as information and communication technology (ICT).

This is clearly proven by the growth of this company’s projects in the past year despite facing an uncertain pandemic situation.

Among Serba Dinamik’s achievements in 2020 were winning two engineering, procurement, construction and commissioning (EPCC) projects in Abu Dhabi with an estimated contract value of US$1.78 billion (US$1=RM4.11).

The company also acquired Teluk Ramunia Yard in Kota Tinggi, Johor from Petronas Assets Sdn Bhd, a wholly-owned unit of Petroliam Nasional Bhd, and completed the construction of Bintulu Integrated Energy Hub in Kidurong, Bintulu.

Within the same year, it secured two ICT contracts to implement a digital platform in Zambia worth RM529.63 million, signed a memorandum of understanding (MOU) with Huawei Technologies (Malaysia) Sdn Bhd and acquired Serba Dinamik Education Sdn Bhd (formerly known as Prestariang Education Sdn Bhd).

The source said although the company is facing a problematic issue raised by its external audit, it is currently working to address the issue and find solutions in the interest of shareholders as well as other stakeholders.

“Certainly, Serba Dinamik is looking for the best way to address this issue and what is important is that every decision should take into account various perspectives for the benefit of shareholders and other stakeholders,” the source added.

Serba Dinamik also played its role in corporate social responsibility (CSR) by providing immediate assistance worth RM5 million to those in need to fight the Covid-19 pandemic in the form of donations of personal protective equipment (PPE) such as gloves and masks as well as food.

Besides CSR programmes in the country, Serba Dinamik is also very active in providing assistance in various international locations, including in Indonesia, New Guinea and Senegal in efforts to combat the Covid-19 pandemic.

Many CSR programmes have also been planned between June and December this year including emergency aid for Palestinians through donation collections from all Serba Dinamik staff throughout Malaysia which would be channelled to several non-governmental organisations in Malaysia.

It would also donate tablets for educational purposes to students undergoing home-based teaching and learning as well as those most in need and affected by the pandemic, especially the poor and residents of squatter and People’s Housing Programme. — Bernama

Posted by nuilam hali > 2021-06-08 20:57 | Report Abuse

to late.damage done.no one want to buy serba dynamik anymore

Posted by nuilam hali > 2021-06-08 21:00 | Report Abuse

even epf sold the share how to remain strong.bungkus lah

Posted by Jokers2020 > 2021-06-08 21:26 | Report Abuse

if tomorrow still down will be good oppurtunity to sapu kaw kaw...

Posted by kingkong > 2021-06-08 22:11 | Report Abuse

"The observer said not many Bumiputera companies have achieved success in the highly competitive O&G industry in such a short period as Serba Dinamik." This just proves you cant coddle somebody to success. Demi bangsa dan agama :)

Posted by DickyMe > 2021-06-08 22:15 | Report Abuse

Damage control article.

Posted by bigman888 > 2021-06-08 22:31 | Report Abuse

so many projects ...but cannot generate profits/cash through operating...so if not rubbish then it will be company doing charity?

Posted by ooiyaotung > 2021-06-08 22:35 | Report Abuse

this is

Posted by michaelwong > 2021-06-08 22:58 | Report Abuse

With lots of unstoppable multiple projects but the company still clinging from funds shortage that's why l never touched this stock despite with those bombastic projects

Posted by firehawk > 2021-06-08 23:16 | Report Abuse

Serba Dinamik not only played its role in corporate social responsibility (CSR) but also a loyal supporter of bumiputras development program, e.g. participated vendor development program hosted by Petronas ... and thus, get a lot of credit from gov /GLC which translates to getting projects /contracts grom gov /GLC ... and many gov (gov linked) funds are holding Serbak/ KPower /SCIB in their portfolio ....

would the gov just let it fall？

Posted by DickyMe > 2021-06-08 23:20 | Report Abuse

CSR is a leakage programme.

Posted by stockraider > 2021-06-09 00:04 |

Post removed.Why?

Posted by stockraider > 2021-06-09 00:34 |

Post removed.Why?

Posted by firehawk > 2021-06-09 00:54 | Report Abuse

Soohai! U go and find yr many enemies out there ... bear in mind, many forumers already known what u r all about! :-)

Posted by stockraider > 2021-06-09 00:55 |

Post removed.Why?

Posted by OrlandoOilSemiconIoT > 2021-06-09 08:13 | Report Abuse

Tis is a precursor to imminent intervention by d powerful

Posted by OrlandoOilSemiconIoT > 2021-06-09 08:13 | Report Abuse

Tis is a precursor to imminent intervention by d powerful

Posted by OrlandoOilSemiconIoT > 2021-06-09 08:14 | Report Abuse

Tis is a precursor to imminent intervention by d powerful

Posted by super168 > 2021-06-09 08:41 | Report Abuse

Is it true that Karim guy is a Chinese muslim? Like this, he is not Bumiputra. Read somewhere, not sure if it's true. Mohd Abdul Karim bin Abdullah @ Sii Chiong Wei

Posted by Trader258 > 2021-06-09 10:49 | Report Abuse

Talk cork article... when the books are being cooked good and proper !

Posted by paperplane > 2021-06-09 17:27 | Report Abuse

haha, SOLID oh? solid until fall 50% ya. damn gao solid

Posted by OrlandoOilSemiconIoT > 2021-06-09 17:58 | Report Abuse

Investment funds may sell quoting pontential corporate governance issues not necessarily financial issues

Posted by Stockisnotfun > 2021-06-10 12:13 | Report Abuse

Is not investment fund quoting. Is KPMG quoting the issue man.

Posted by stockraider > 2021-06-10 20:05 | Report Abuse

REMEMBER THE BOND HOLDERS RANKED AHEAD OF SHAREHOLDERS, IF BOND SUFFERED 70% LOSSES, THAT MEANS HIGH CHANCE SERBA COMPANY GOING TO BANKRUPT LOH!

Trading at -70% below par, have Serba Dinamik’s bonds hit rock bottom?

SHARES of Serba Dinamik Holdings Bhd have plummeted by more than half following the resumption of trading.

The bonds of Serba Dinamik suffered a similar fate with bid quotes for their USD bonds SDHMK 6.300% 09May2022 Corp (USD) and SDHMK 6.997% 12Mar2025 Corp (USD) reaching as low as 30 cents to the US dollar (70% below par).

On May 25, Serba Dinamik announced that its external auditors have flagged concerns about matters relating to its statutory audit. The company informed that it will soon appoint an independent firm to verify the audit matters. On May 28, a company response was provided to the queries raised by Bursa Malaysia which we will be examine in this article.

Examining KPMG’s raised issues

Referring to Serba Dinamik’s unaudited results for financial year ended Dec 31, 2020, we noted that the RM608.94 mil increase in trade receivables during 2020 is nearly equal to the RM652 mil of receivables flagged by KPMG.

Furthermore, COVID-19 exacted turmoil in the energy industry last year where oil prices plunged and countries were cutting production.

However, Serba Dinamik grew its gross profits for its operations & maintenance (O&M) segment by 26.5% year-on-year (yoy).

Yet Table 1 shows that other similar energy companies listed in Malaysia have seen a decline in annual revenue. During 2020, Serba Dinamik reportedly increased its revenue by 32.8% yoy.


Source: Bloomberg Finance LP, iFAST compilations

Additionally, in December 2018, Serba Dinamik made a 30% acquisition in eNOAH iSolution India Pvt Ltd for RM 15 mil to improve its IT solutions segment. In 2019, its share of total comprehensive income from eNOAH was RM 1.14 mil. However, with this acquisition, its 2019 audited gross profits from the information, communication, and technology (ICT) segment multiplied by about 10 times to RM21.23 mil.

Subsequently in 2020, gross profit for this segment increased by 206.79% to RM65.13 mil in what seems to be amazingly quick growth.

While we have the company’s balance sheet and credit ratios in Table 2 and 3 respectively, there is a chance that the some of the numbers may be subjected to change due to the company’s fluid and developing situation as well as the questions brought up by KPMG.

This makes analysis more difficult but we will rather be safe than sorry in this situation due to the below reasons.

The group is required to maintain a maximum gearing ratio of 2.00 times debt-to-equity, failing which this could trigger an event of default from lenders.

There is a possibility that the equity value of the company would fall after the balance sheet has been finalised by auditors.

In addition, we believe that the company’s ability to access capital markets has been materially constrained and its cloudy liquidity position could make it hard to justify the bid prices for the SDHMK 6.300% 09May2022 Corp (USD) and SDHMK 6.997% 12Mar2025 Corp (USD).

In other words, we believe that the recovery value could be even lower than current depressed pricing of around 30-40s. As such, we advise investors to exit from the bonds. – June 9, 2021