KUALA LUMPUR: Shares in Serba Dinamik Holdings Bhd rose over 4% in early trade Tuesday after securing RM548mil worth of contracts.
The energy services group rose 4.94%, or eight sen to RM1.70 with 5.5 million shares traded.
Serba Dinamik secured nine contracts worth a total RM548.2mil and another two contracts with unspecified values.
The company said the contracts were in operations and maintenance (O&M), engineering, procurement, construction and commissioning (EPCC) as well as information, communications and technology (ICT) space.
Group managing director/group chief executive officer Datuk Dr Mohd Abdul Karim Abdullah said five O&M projects were awarded by PT Pilar Bahtera Energi, the leading uninterrupted power supplier in Indonesia, which enabled Serba Dinamik to participate into the republic’s power industry.
For the ICT project, the company will implement Smart Solutions for development of ‘Smart and Safe City’ in India.
Kenanga Research is positive on Serba Dinamik’s new contracts win, reflecting the group’s competitive and technical capabilities.
“These contracts are expected to fetch mid to high-teens gross margins, in line with the group’s historical average.
“Additionally, most of the Indonesian O&M contracts secured this time round are from the power sector – a reflection of the group shifting reliance away from the oil and gas sector.
“These are the group’s first wins in FY21, bringing its order-book to RM18.7bil – of which only 40% are from the oil and gas sector,” Kenanga said.
The research house has maintained its outperform call on Serba Dinamik with a target price of RM2.50.