KUALA LUMPUR (April 23): Serba Dinamik Holdings Bhd’s steady growth trajectory is likely to continue, backed by a strong orderbook and replenishments, especially in the information and communications technology (ICT) segment, according to RHB Institute Research.

In a note today, its analyst Sean Lim said the ICT segment is expected to deliver strong growth for the energy services group in the next few years.

“The RM7.7 billion worth of Abu Dhabi innovation hub project is currently at the engineering and design stage and construction work should commence in 2H21 [second half of 2021]. Piling work for the RM1.5 billion data centre project has started in April and construction work should accelerate in 2H21 as well.

“We are guided [that] the portion from the two projects will be recognised under the ICT division,” he noted.

Meanwhile, Lim said the company is exploring areas in space technology which includes collaboration with the Malaysian Space Agency (MYSA) and various local colleges and universities for research and development works and talent development.

“In order to strengthen its internal capability, it partnered with Swissto12, a private technical arm based in Switzerland, which manufactures satellite components via 3D printing technology. This is positive in the long term as near-term earnings contribution could be only minimal.

“We are long-term positive on recent efforts of exploring space technology but near-term earnings impact is rather minimal. Our recommendation is premised on improving operating cash flows without the need to trigger further cash calls,” added Lim.

RHB kept its "buy" call on the group with an unchanged target price of RM2.53.

At the time of writing, Serba Dinamik had risen one sen or 0.62% to RM1.62 with some 3.32 million shares traded. This gave the group a market value of RM6.04 billion.