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*Why Serba Dinamik a nearly recession-proof stock... but investors have not realised it yet Grab it fast before it gets higher*
• The weakness in its share price provides a great chance to add this stock because the Group is a proven winner in both low and high oil prices landscapes.
• The Group will continue to operate as normal during Malaysia’s 14-day movement control order because it needs to deliver continuous support to its clients in critical areas of the O&G industry to ensure minimal or no disruption to their operations.
• Volatility in crude oil prices will not have a long-term impact on its O&M business. *Maintenance is still required as long as productions are on-going. In fact, the Group could benefit from higher maintenance demand from the Middle East as Saudi ramps up the production*
• Serba currently has an outstanding orderbook of RM10.7 billion, *which will be more than enough to provide earnings visibility for two years. It can even enough to chart another new profit height this year despite the global business slowdown*
• Its orderbook target of RM15 billion by end-2020 remains intact with crucial maintenance work and with the Pengerang Integrated Complex starting up
• ALL brokers in town have maintained their *BUY calls on the stock with FY20 TP in a range of at least RM2.50 to RM3.05*, which implies an upside target of 79%-118%
oil company may start to cut down maintenance cost when the oil price is too low to make profit. serba dinamik will be impacted too. its a chain reaction
Why Yutaka always comes out some bullshit comment without doing any homework. Last time, Yutaka very funny said that ghl is not competitor of revenue group berhad. This time said cut down maintenance cost. Yutaka are you blind? So many contract hold by serbdak. Even they cut down cost, people still will use oil, some maintenance cannot be cut down one. Now oil price is lower, why you didn't said maybe more people able to buy more oil and it will be needed for more maintenance ?
Opps, Yutaka count on online Sifu, so these Sifu said anything you will believe, even they said ghl is not competitor of revenue group berhad you also believe?
Oil price low give you an opportunity buy in with lower price lo, maybe Yutaka is a trader so you won't interesting in this counter. I want invest, not trade
Let me share with you guys. The principal is like this. Oil price reduce was due to? Supply n Demand concept right? Meaning that Supply is too much more than Demand. So, Supply more mean Production of Oil is more. When production is more, meaning maintenance has to keep to ensure more production. Like Machine, if you wish your machine able to come out huge volume, you also need to make sure your machine is fit and tip top condition. That's is why Serba Dynamik come in and help.
not 100%, the aim of this oil war is to kill usa oil producer. other small oil producer will face the same problem. sooner or later many oil producer can go bankrupt. once no money, they will have no money to do all the maintenance..they will start to cut cost and production since the oil is too cheap.
all other oil counter is dropping tremendously showing that the oil price already affected their revenue and profit. these conpany will start to cut maintenance cost. if other oil company limit up, yes serba dinamik will have a good biz
when there is a big production, doesnt mean the company can sell more since the demand is low now. all the oil will be kept for reserve. profit lesser due to cheap oil when a lot of reserve
KUALA LUMPUR: Serba Dinamik Holdings Bhd, whose share price has plunged 20% so far this week, is seeing little to no impact from the oil price crash on its business, says group managing director Datuk Dr Mohd Abdul Karim Abdullah.
“The oil price crash will not impact Serba Dinamik from the aspect of projection on income and profitability that we have put forward previously,” Mohd Abdul Karim told The Edge Financial Daily.
This, he said, is because the group expects maintenance works to still b
works to still be available in the current market situation — in which Saudi Arabia is opting to increase production and drive prices lower to influence its competitors.
“This is a price war, where Saudi as an oil major is expecting to ramp up production, which will result in more wear and tear, and subsequently more maintenance works,” said Mohd Abdul Karim.
Now the share price drop is because of bad economic cause by the virus, low oil price also may create panic to investor. However, company already declare that low oil price not influence much.
Serbadk can invest, but better not this time, their maintenance business not problem, the problem is now the whole economic not suitable to invest first
Thanks for your concern about our business in this current market condition.
We would like to inform you that so far we have not seen any of our contracts being cancel and none of our client came to us to negotiate on the terms and pricing. Our core business are maintenance of O&G plant and facilities. As everyone aware, most O&G majors are increasing their production and this will lead to the equipment wear & tear deterioration. Thus, our business is to support our clients facilities to ens
Agree with your point of view. Serba is service for oil & gas since middle East gonna increase the production, it will increase serba revenues. No stocks is recession proof. only great business will sustain in long term, recession is time to acquire great business in cheap valuation.
you think serbadk stupid meh, of course they analyze the customer able to pay before they accept the project. you can check their ipo prospectus, they never do impairment before.
Agree with Chin Leong, and also oil price dropped hurt US a lot. Do you think US will let it falls continuously? You will see a dramatic move from those oil producer countries. They have their scripts to follow.
i only know serbadk customer is malaysia, which is petronas contribute 29.1% of revenue (395454). arab saudi contribute little only (25027). so whoever says arab contribute by increase supply, is really ignoramus
Serbadk main customer is Middle East. Not only Saudi increase their production, other as well. Serbadk already proved them can operate during low oil price environment. But if the COVID-19 still cannot cure by this year, Serbadk will have impact also.
Based on current trend, China that has 1.3billion population and today only record 35 people infected in whole country. So Covid19 should be able to control as long has proper policy on it. China has prove it.