KUALA LUMPUR: Shares of Serba Dinamik Holdings Bhd rose in active trading on Wednesday morning, after the company announced that it secured 12 contracts in Malaysia, Indonesia and Oman.
The counter added 3.6%, or eight sen to RM2.30 with 3.08 million shares traded.
Serba Dinamik said three of its subsidiaries have secured 12 new contracts — half of which is worth a combined US$78mil (RM320.89mil), while the other half are on call-out basis.
The contracts worth US$78mil comprise one contract in Oman for its wholly-owned unit Serba Dinamik International Ltd, and five contracts secured by 75%-owned indirect subsidiary PT Serba Dinamik Indonesia.
The scopes of contract include operation and maintenance (O&M), engineering, procurement, construction and commissioning (EPCC), and one for other products and services.
Kenanga Research is positive on Serba Dinamik announcing its first contract wins for the year, which includes six overseas jobs worth US$78mil, and six domestic jobs with no specific value.
“Together, we guesstimate the total value at around RM900mil, bringing its order-book to RM10.7bil. Maintain outperform, with target price of RM2.50, with continued earnings delivery and contract wins to act as catalysts,” it said.
“We continue to like Serba Dinamik for having one the best earnings delivery track records within the oil and gas space, coupled with outstanding management and best-in-class ROE against sector peers.
“Further contract wins and continued earnings delivery would act as catalysts moving forward,” Kenanga said.