KLSE:SERBADK

Stock Analysis Report

Serba Dinamik Holdings Berhad

Executive Summary

Serba Dinamik Holdings Berhad, an investment holding company, provides engineering solutions to oil and gas, and power generation industries.


Snowflake Analysis

Reasonable growth potential with acceptable track record.

Share Price & News

How has Serba Dinamik Holdings Berhad's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SERBADK has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.4%

SERBADK

2.4%

MY Energy Services

-0.1%

MY Market


1 Year Return

26.3%

SERBADK

23.0%

MY Energy Services

-6.7%

MY Market

Return vs Industry: SERBADK exceeded the MY Energy Services industry which returned 24% over the past year.

Return vs Market: SERBADK exceeded the MY Market which returned -5.7% over the past year.


Shareholder returns

SERBADKIndustryMarket
7 Day3.4%2.4%-0.1%
30 Day4.8%-1.3%-3.0%
90 Day15.9%-2.4%-2.4%
1 Year29.3%26.3%24.6%23.0%-3.5%-6.7%
3 Year204.3%184.7%-16.6%-19.0%-0.5%-12.2%
5 Yearn/a-55.9%-57.6%0.7%-16.6%

Price Volatility Vs. Market

How volatile is Serba Dinamik Holdings Berhad's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Serba Dinamik Holdings Berhad undervalued compared to its fair value and its price relative to the market?

15.79x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SERBADK (MYR2.4) is trading above our estimate of fair value (MYR1.58)

Significantly Below Fair Value: SERBADK is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SERBADK is good value based on its PE Ratio (15.8x) compared to the Energy Services industry average (15.8x).

PE vs Market: SERBADK is poor value based on its PE Ratio (15.8x) compared to the MY market (14.5x).


Price to Earnings Growth Ratio

PEG Ratio: SERBADK is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: SERBADK is overvalued based on its PB Ratio (3.1x) compared to the MY Energy Services industry average (1x).


Next Steps

Future Growth

How is Serba Dinamik Holdings Berhad forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

16.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SERBADK's forecast earnings growth (16.4% per year) is above the savings rate (3.4%).

Earnings vs Market: SERBADK's earnings (16.4% per year) are forecast to grow faster than the MY market (11% per year).

High Growth Earnings: SERBADK's earnings are forecast to grow, but not significantly.

Revenue vs Market: SERBADK's revenue (16% per year) is forecast to grow faster than the MY market (5.8% per year).

High Growth Revenue: SERBADK's revenue (16% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SERBADK's Return on Equity is forecast to be high in 3 years time (20.8%)


Next Steps

Past Performance

How has Serba Dinamik Holdings Berhad performed over the past 5 years?

28.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SERBADK has a high level of non-cash earnings.

Growing Profit Margin: SERBADK's current net profit margins (11.3%) are lower than last year (11.5%).


Past Earnings Growth Analysis

Earnings Trend: SERBADK's earnings have grown significantly by 28.9% per year over the past 5 years.

Accelerating Growth: SERBADK's earnings growth over the past year (31.2%) exceeds its 5-year average (28.9% per year).

Earnings vs Industry: SERBADK earnings growth over the past year (31.2%) exceeded the Energy Services industry 10.9%.


Return on Equity

High ROE: SERBADK's Return on Equity (19.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Serba Dinamik Holdings Berhad's financial position?


Financial Position Analysis

Short Term Liabilities: SERBADK's short term assets (MYR3.4B) exceed its short term liabilities (MYR870.1M).

Long Term Liabilities: SERBADK's short term assets (MYR3.4B) exceed its long term liabilities (MYR2.2B).


Debt to Equity History and Analysis

Debt Level: SERBADK's debt to equity ratio (108.1%) is considered high.

Reducing Debt: SERBADK's debt to equity ratio has increased from 88.1% to 108.1% over the past 5 years.

Debt Coverage: SERBADK's debt is not well covered by operating cash flow (5.1%).

Interest Coverage: SERBADK's interest payments on its debt are well covered by EBIT (6.6x coverage).


Balance Sheet

Inventory Level: SERBADK has a high level of physical assets or inventory.

Debt Coverage by Assets: SERBADK's debt is covered by short term assets (assets are 1.3x debt).


Next Steps

Dividend

What is Serba Dinamik Holdings Berhad's current dividend yield, its reliability and sustainability?

1.59%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%2.0%markettop25%5.0%industryaverage1.3%forecastin3Years2.4%

Current dividend yield vs market & industry

Notable Dividend: SERBADK's dividend (1.59%) isn’t notable compared to the bottom 25% of dividend payers in the MY market (1.95%).

High Dividend: SERBADK's dividend (1.59%) is low compared to the top 25% of dividend payers in the MY market (4.95%).


Stability and Growth of Payments

Stable Dividend: SERBADK has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: SERBADK has only been paying a dividend for 3 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.3%), SERBADK's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SERBADK's dividends in 3 years are forecast to be well covered by earnings (30.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.5yrs

Average management tenure


CEO

Mohd Abdul Bin Abdullah (54yo)

3.8yrs

Tenure

RM1,389,000

Compensation

Dr. Mohd Abdul Karim Bin Abdullah is Non Independent Non-Executive Deputy Chairman at Kumpulan Powernet Berhad since November 28, 2019. Dr. Bin Abdullah has been Group Chief Executive Officer and Director  ...


CEO Compensation Analysis

Compensation vs Market: Mohd Abdul's total compensation ($USD335.07K) is below average for companies of similar size in the MY market ($USD513.43K).

Compensation vs Earnings: Mohd Abdul's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Mohd Abdul Bin Abdullah
CEO, Group MD & Non-Independent Executive Director3.8yrsRM1.39m21.4% MYR1.6b
Syed Bin Syed Faisal
Group Chief Financial Officer4.5yrsno datano data
Kalaikovan Antony
Chief Technology Officer10.5yrsno datano data
Yusni Yusop
Vice President of Corporate Communication4.9yrsno datano data
Syaiful Osman
Head of Group Human Capital & General Affairs Division18.3yrsno datano data
Rosland Bin Othman
Senior Vice President of Special Projects & Business Development3.7yrsno datano data
Muhammad bin Othman
Company Secretary0yrsno datano data
Nadiah Binti Adnan
Company Secretary1.5yrsno datano data

4.5yrs

Average Tenure

43.5yo

Average Age

Experienced Management: SERBADK's management team is considered experienced (4.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mohd Abdul Bin Abdullah
CEO, Group MD & Non-Independent Executive Director3.8yrsRM1.39m21.4% MYR1.6b
Rozilawati Binti Haji Basir
Independent Non-Executive Director0.8yrsno data0.075% MYR5.5m
Hasmuddin Bin Tengku Othman
Independent Non-Executive Director3.8yrsRM143.00kno data
Mohamed bin Abu Bakar
Independent Chairman3.8yrsRM207.00k0.0065% MYR480.3k
Abdul bin Sahib
Non-Independent Non-Executive Director3.8yrsRM140.00k19.18% MYR1.4b
Awang bin Awang Putera
Non Executive Director3.8yrsRM1.11m9.5% MYR703.1m
Sharifah binti Syed Ahmad Radzi
Independent Non-Executive Director3.8yrsRM146.00kno data
Hasman bin Yusoff
Senior Independent Non-Executive Director3.3yrsRM147.00kno data

3.8yrs

Average Tenure

58yo

Average Age

Experienced Board: SERBADK's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3%.


Top Shareholders

Company Information

Serba Dinamik Holdings Berhad's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Serba Dinamik Holdings Berhad
  • Ticker: SERBADK
  • Exchange: KLSE
  • Founded: 1993
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: RM7.401b
  • Shares outstanding: 3.08b
  • Website: https://www.e-serbadk.com

Number of Employees


Location

  • Serba Dinamik Holdings Berhad
  • Menara Serba Dinamik
  • Level 15, Presint 3.4
  • Shah Alam
  • Selangor
  • 40000
  • Malaysia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SERBADKKLSE (Bursa Malaysia)YesNew Ordinary SharesMYMYRFeb 2017

Biography

Serba Dinamik Holdings Berhad, an investment holding company, provides engineering solutions to oil and gas, and power generation industries. The company operates through three segments: O&M, EPCC, and Others. It offers operation and maintenance services, such as maintenance, repair, and overhaul services for gas and steam turbines, internal combustion engines, electric motors, generators, compressors, pumps, blowers, and fans; inspection, repair, and maintenance services for boilers, unfired pressure vessels, heat exchangers, columns, reactors, and separators, as well as storage tanks and silos, piping systems, and support structures; and maintenance, testing, and calibration services for process control and instrumentation. The company also provides engineering, procurement, construction, and commissioning services, which include piping system, process control and instrumentation, equipment installation, power generation plant, gas compression plant, auxiliary power generation and fire-fighting system, and other related services; and technical training, and information and communication technology solutions and services, as well as supplies products and parts. In addition, it offers logistics services, as well as process and supplies compressed natural gas; and Internet and mobile application solutions. Further, the company provides management services. It serves customers in Malaysia, Qatar, Saudi Arabia, Indonesia, the United Arab Emirates, Bahrain, and internationally. Serba Dinamik Holdings Berhad was founded in 1993 and is headquartered in Shah Alam, Malaysia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 16:55
End of Day Share Price2020/02/18 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.