Monday, November 28

Serba Dinamik refutes rumours of acquiring KNM Group


KUCHING: Serba Dinamik Bhd (Serba Dinamik) on Monday denies any plans to acquire KNM Group Bhd (KNM Group), its equity, assets or projects.

Serba Dinamik’s founder and substantial shareholder Datuk Mohd Abdul Karim Abdullah yesterdau reaffirmed that while he is a shareholder of Sarawak Consolidated Industries Bhd (SCI) and Kumpulan Powernet (Powernet), those shares are held under his own personal capacity and he does not have any operational role in them.

Currently, SCI manufactures precast concrete products and is involved in property development in Sarawak.

Powernet, where Karim and his business partner acquired a 30 per cent equity stake, is involved in fabric manufacturing in Bentong, Pahang and has been registering losses over the past nine years.

“As SCI and Powernet are not involved in the oil and gas business, we are glad that Serba reaffirmed its commitment to focus on its core expertise and expand its recurring income profile,” opined analysts at AmInvestment Bank Bhd (AmInvestment Bank).

“Serba remains on track to reach management’s outstanding order book target of RM10bil by end-FY19F, which implies an impressive order book growth of 33% YoY.

“This means that the FY19F revenue growth of 15%–20 per cent should be achievable. Management expects the continuation of strong revenue growth this year driven by growing demand in the Middle East and Southeast Asia, spearheaded by the UAE and Qatar.

AmInvestment Bank remained positive on Serba’s O&M business model, which is still actively expanding its long-term recurring earnings profile by strategically leveraging its EPCC and ownership platform, similar to Dialog Group.