In its research note on Monday, it had a fair value of RM2.20 a share, based on a slightly lowered 22% discount to its diluted sum-of-parts valuation of RM2.83 a share.
It said its forecasts has been revised to account for the RM509mil gross proceeds, which reduce the group's FY21 forecast net gearing from 0.7 times currently to 0.4 times, while diuting FY21-22 forecast earnings per share by 6%.
"With the recent retracement in Serba’s share price, the stock is currently trading at a highly compelling FY21F PE of only nine times for an operation and maintenance service provider with a recurring income profile, while offering an attractive dividend yield of 5%," it said.
In comparison, Dialog Group currently trades at a price-earnings of over 30 times.
Serba Dinamik recently completed the book-building exercise for its 10% private placement with the issuance of 336.8 million new shares at RM1.51 a share, an 8% discount to the five-day volume weighted average market price.
AmInvestment said the group is poised for stronger order book growth with the recent aquisition of the RM320mil Teluk Ramunia yard, which enhances and substantively expands its existing strategic presence in Pengerang's Refinery and Petrochemical Integrated Development.
It believes the group's order book has increased slightly by 1% quarter-on-quarter at RM18.7bil, exceeding the group's earlier FY20 forecast target of RM15bil set at the start of 2020.
"While management has yet to provide fresh guidance for the group’s year-end 2021 order book, we expect additional contracts later this year as Serba aims to lease parts of the 170-acre Teluk Ramunia yard to third parties while angling for fresh jobs in decommissioning, petrochemicals and renewable sectors," said AmInvestment.
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