KUALA LUMPUR: Rakuten Trade Sdn Bhd has recommended a “buy” call on Serba Dinamik Holdings Bhd with a target price of RM4.66 on the back of the company’s healthy balance sheet and current order book.
In a research note, Rakuten said Serba Dinamik’s order book now stands at RM6.8 billion and this was expected to hit RM7.5 billion by end-2018, while its earnings growth was anticipated to increase over 20 per cent for the financial years (FY) 2018 and 2019.
Year-to-date, it said the company’s share price had risen over 20 per cent but is still trading at an undemanding valuation.
Domestically, Serba Dinamik is a Petronas licensed company with 63 standardised work and equipment categories codes which allows it to bid for projects from major oil and gas (O&G) service providers.
Its core competencies are in operations and maintenance (O&M) business where it is reportedly a global top three in maintenance repair overhaul (MRO) of rotation equipment and top four in inspection, repair maintenance (IRM) of static equipment in the O&G.
“Serba Dinamik’s next growth stems from its strategic plans for Pengerang Eco Industrial Park, a 25.09 hectare site for the MRO and IRM Plant turnaround and technical vocational education and training city to support Petronas’ US$62 billion Pengerang Integrated complex project,” it said.
At 12.30 pm, Serba Dinamik’s share price was down seven sen to RM3.89 with 992,900 shares traded.