Serba Dinamik’s 3Q earnings jump driven by ICT business

by FARA AISYAH / pic by TMR FILE

SERBA Dinamik Holdings Bhd’s earnings for the third quarter ended Sept 30, 2020 (3Q20), increased 30.79% year-on-year (YoY) to RM148 million from RM113.16 million on the expansion of its information and communications technology (ICT) business worldwide.

Earnings per share for the period was 4.39 sen, while revenue climbed 40.95% YoY to RM1.48 billion.

Revenue from Serba Dinamik’s ICT business jumped more than 11 times to RM141.3 million for the period from RM12.31 million in the corresponding period last year, mainly contributed by a new contract secured in Bahrain for service provision relating to Extended Reality training applications.

Its operations and maintenance (O&M) segment’s revenue grew 33.33% YoY to RM1.24 billion in the period, while revenue for its education and training business soared 98% YoY to RM584,000 in the quarter contributed mainly by Materials Technology Education Sdn Bhd, which include technical training programmes specialising in all IMM Training and Certification Programmes in Malaysia.

In its exchange filing yesterday, Serba Dinamik noted that revenue for its engineering, procurement, construction and commissioning segment (derived from various contracts in the United Arab Emirates, Tanzania, Laos and Malaysia) decreased 7.22% YoY to RM98.99 million in the 3Q.

For the cumulative nine-month period, Serba Dinamik’s net profit improved by 20.76% YoY to RM429.6 million, while revenue increased by 32.49% YoY to RM4.2 billion.

“Overall, the group is optimistic moving forward by tapping onto these proven capabilities into all countries within our global network barring unforeseen circumstances should the current Covid-19 pandemic prolong.

“With the completion of construction of Bintulu Integrated Energy Hub and acquisition of Teluk Ramunia Yard and University Malaysia of Computer Science and Engineering, as well as being able to continuously service existing contracts on hand, these initiatives are expected to enhance the group’s financial position and profitability,” it said in an exchange filing yesterday.

Serba Dinamik added that the group remains vigilant and positive in pursuing business opportunities and securing more market share, both domestic and internationally, given the volatility of market and oil prices.

The group is servicing existing contracts, especially O&M contracts in hand, without any significant disruption despite the current pandemic as most of its operations are essential industries — such as oil and gas, power generation and water and utilities.

On the ICT segment, the group said it will emphasise on internal developed mobile application, e-commerce platform and digital theme park.

To date, the ICT scope is segmented into cloud computing, artificial intelligence, cyber security, financial technology and frontier technologies divisions.

The counter closed three sen or 1.8% higher to RM1.70 yesterday, giving it a RM5.76 billion market capitalisation.