YOURS truly must confess that it is getting increasingly challenging to publish latest developments on Serba Dinamik Holdings Bhd. This is especially so when majority of the readership – to put it bluntly – “only expects you to whack the company”.
Well, Lord Buddha’s wisdom of pursuing the middle path – ie trying to pen a balanced piece or at least allow the global integrated oil & gas (O&G) or its promoters to run their so-called alternate views – does not seem to work anymore.
It seems that it’s one-way traffic all the way. Yours truly has been accused of running “paid advertorials” in the name of trying to be fair – even as yours truly has had his fair share of ‘whacking’ or ‘belittling’ (or whatever despicable word one can think of) the company.
On this note, yours truly feels the need to enlighten readers on the need to furnish two sides of the story no matter what pre-conceived notion readers might already have on Serba Dinamik. After all, the media has the responsibility to be fair to both sides of the divide regardless of the hostility readers expect the media to vent out on the company.
It is already public knowledge that Serba Dinamik’s financial health has fallen deeper into the chronic state. The company continued to bleed as it posted a third consecutive net loss of RM434.19 mil for its 3Q FY6/2022 ended March 31, 2022 – its largest to-date.
Prior to this, the company posted a net loss of RM290.33 mil for its 2Q FY6/2022 and a net loss of RM42.11 mil for its 1Q FY6/2022.
However, revenue for the quarter rose 16% quarter-on-quarter (qoq) to RM205.48 mil from RM177.14 mil in 2Q FY22, attributable to its operations and maintenance (O&M) segment, especially from Qatar, United Arab Emirates (UAE) and Malaysia.
Yours truly does not wish to elaborate further on Serba Dinamik’s prospects but leave behind what is seemingly one of the dandiest piece of view on the company is recent times (courtesy of WisdomNTruth from the i3 Investor Platform):
“If you take a closer look on their latest QR (quarterly results), the cash flow statement stated that they (Serba Dinamik) are generating positive operating cash flow (which is from the business operation itself) and their cash were mainly used to repay loan and borrowings & interest.
This is very important because they are still able to generate income from their business operation and it will not cause cash exhaustion on the business itself. They are still actively repaying their debts and the business operation itself is sustainable on their own.
The management is undergoing restructuring to identify assets to pay off their debts and regain the momentum which can be a good initiative to start fresh.
There are hundreds of employees hired by the company and I do not think that it is possible or right for the company to lay off all its employees when times are hard and difficult.
Things are getting more and more expensive which I’m sure everyone is experiencing (that).
They need to be guided to the right path. Save the company first; do not let the employees suffer and then find out what is the main problem of the downfall, recharge and restart.
That is the right way to save everyone from this mess. The share price is the least to worry now. I am sure the management is trying their best to bring value to everyone after this mistake.
Everyone has paid their price and it is time to focus on the future and making sure they do not repeat the same mistake. Serba Dinamik was founded almost 30 years ago and they definitely have brought value to our country and nation.
No one is perfect and I believe they have learnt from their mistake. They deserve a second chance as the people who have contributed to the company.”
At the close of today’s mid-day trading, Serba Dinamik was down 1 sen or 9.09% to 10 sen with 39.99 million shares traded, thus valuing the company at RM373 mil. – May 31, 2022