AMINVESTMENT BANK MAINTAINS BUY CALL FOR SERBA DINAMIK
KUALA LUMPUR, Jan 19 -- AmInvestment Bank Bhd has maintained its “buy” call on Serba Dinamik Holdings Bhd’s shares, with an unchanged fair value of RM2.20 per share.
On Monday, the energy services group announced 11 new contracts with a firm value of US$136 million (US$1=RM4.05) to provide equipment and services to multiple clients over different periods, ranging from three months to 15 years.
The contracts include eight operation and maintenance projects in Indonesia and one information and communications technology (ICT) job in India.
“While management has yet to provide fresh guidance for the group’s year-end 2021 order book, we expect additional contracts later this year as Serba Dinamik aims to lease parts of the 68.8-hectare Teluk Ramunia yard, which cost RM320 million, to third parties while angling for fresh jobs in decommissioning, petrochemicals and renewable sectors,” said AmInvestment Bank in a note today.
The investment bank believed Serba Dinamik’s outstanding order book had increased slightly by 1.0 per cent quarter-on-quarter at RM18.7 billion, including the RM466 million worth of jobs secured early last month.
AmInvestment Bank also expects Serba Dinamik’s 10 per cent proposed private placement to reduce its net gearing of 0.9x as at the third quarter of financial year 2020 to a more comfortable 0.6x, while diluting its current financial year earnings per share by 7.0 per cent to 18 sen.
“This assumes interest savings at 3.0 per cent,” it added.
-- BERNAMA
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