News

AmInvestment Bank maintains "buy" call on Serba Dinamik

KUALA LUMPUR, Feb 11 -- AmInvestment Bhd has maintained its ‘buy’ call on  Serba Dinamik  Holdings Bhd (Serba) with an unchanged forecast and dilutes sum-of-parts-based fair value of RM3 per share.

In a research note today, it said, this followed Serba’s confirmation that it is in preliminary negotiations with the Sarawak state government to acquire Sarawak-based Brooke Dockyard and Engineering Works Corp.

“While such an acquisition could strategically transform Serba’s offshore fabrication and operation and maintenance capabilities, we would have been negative on such a development given the potentially high price tag, which channel checks had indicated was at RM150 million.

“Additionally, as Brooke Dockyard was reportedly in financial distress with losses incurred on a contract, we are doubtful that the company is able to secure any major contracts over the near to medium term from Petronas, which requires good and timely execution from its contractors,” the research house said.

AmInvestment’s analyst Alex Goh said Serba’s high net gearing of 0.7 times in the third quarter of 2019 is likely to rise further to 0.8 times by the fourth quarter of 2019 due to working capital requirements.

Hence, the group is likely to raise additional equity to finance such an acquisition, he said.

“Given that the yard is unlikely to generate any substantial profitability over the next one to two years, on the lack of outstanding order book, an acquisition by Serba would have been value-destructive.

“As such, a possibility has been averted, we remain optimistic of Serba’s earnings growth prospects, with an outstanding order book that is already reaching RM10 billion currently and the management is still aiming for topline and earnings growth of 10-15 per cent for the financial year of 2020, supported by an ambitious order book target of RM15 billion,” he added.

-- BERNAMA

 

 

    Other News

Solarvest Akan Pasang Panel Fotovoltaik Solar Terbesar Di Malaysia Di Pusat Beli Belah 1 Utama

KUALA LUMPUR, 15 April (Bernama) -- Bandar Utama City Centre Sdn Bhd melantik anak syarikat Solarvest Holdings Bhd, Solarvest Energy Sdn Bhd, untuk memasang panel fotovoltaik (PV) solar terbesar di Malaysia dan panel PV bersepadu-bangunan di pusat beli-belah 1 Utama.

Verdant Solar Sasar 2,600 Pemasangan Panel Pada Tahun Ini - Ceo

Oleh Siti Radziah Hamzah

KUALA LUMPUR, 11 April (Bernama) -- Penyedia penyelesaian tenaga solar, Verdant Solar Sdn Bhd menyasarkan untuk menggandakan bilangan pemasangan panel solarnya kepada 2,600 pada tahun ini berbanding 1,300 pada 2023.

Aidilfitri: Orang Ramai Dinasihat Utamakan Keselamatan Elektrik Dan Gas - St

PUTRAJAYA, 8 April 2024 (Bernama) -- Orang ramai dinasihatkan supaya mengutamakan keselamatan elektrik dan gas menjelang sambutan Aidilfitri tidak lama lagi.