Investors positive on SCIB shareholder, infrastructure prospects

by FARA AISYAH

SARAWAK Consolidated Industries Bhd (SCIB) is set to stay on an upward trajectory, with investors liking the stock for its major shareholder and prospects in East Malaysia’s infrastructure sector.

The stock has been hitting highs not seen since 2005, having risen 52% in the past 30 days and 28% in the last five days alone.

Year-to-date, shares of SCIB — a manufacturer of precast concrete products — are up more than 250%.

SCIB closed 1.17% lower at RM1.69 yesterday, as the benchmark FTSE Bursa Malaysia KLCI inched up 0.15%.

The recent surge was likely due to Serba Dinamik Holdings Bhd founder and group MD/CEO Datuk Dr Mohd Abdul Karim Abdullah’s (picture) recent majority stake acquisition in the company, Rakuten Trade Sdn Bhd research VP Vincent Lau said.

“The confidence in Mohd Abdul Karim is behind the rise in SCIB. Look at how he grew Serba Dinamik and has been delivering results that beat expectations,” he told The Malaysian Reserve.

In the past 52 weeks, SCIB has advanced 194%, while the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) is down 7.2%.

Serba Dinamik — an engineering services company — hit a high of RM4.56 this year, making Mohd Abdul Karim one of Malaysia’s billionaires.

It was listed in February 2017, at a time when the oil and gas (O&G) industry was still reeling from the 2014 oil rout.

While the O&G industry is still recovering, the group has grown into a multibillion-ringgit firm with consistent profits.

It’s now valued at around RM6.24 billion, from some RM2 billion when it first went public.

Mohd Abdul Karim has been on an acquisition trail this year. On May 27, he emerged as the largest shareholder in SCIB after buying a 22.53% stake in the company.

He was then named as SCIB non-executive and non-independent chairman effective Oct 1.

The persons acting in concert (PACs) with him are Serba Dinamik senior VP Rosland Othman and group financial controller Azhan Azmi.

On Oct 2, Mohd Abdul Karim tabled a mandatory general takeover offer of RM1 per share in Kumpulan Powernet Bhd (KPB) after raising his stake in the company to 36.49%, following the purchase of a 16.09% stake in KPB for RM12.25 million.

Rosland and Azhan are also the PACs in the deal, including Grand Deal Vision Sdn Bhd, which is jointly owned by KPB’s MD Mustakim Mat Nun and Sarah Azreen Abdul Samat.

Mohd Abdul Karim is also the deputy chairman of KPB. Serba Dinamik closed 0.47% lower at RM4.21 yesterday, with four million shares traded.

Meanwhile, KPB fell 0.87% to RM1.14, with 934,000 units done.