SERBADK’s main business activities comprise operations and maintenance (O&M) services, and engineering, procurement, construction and commissioning (EPCC) works. Their revenue mainly comes from operation & maintenance (O&M) which is 86.05% of their total revenue.
SERBADK Customers (Revenue %)
✅ Europe 0.16%
✅ Middle East 59.04%
✅ Central & South Asia = 5.16%
✅ Southeast Asia = 35.64%
Company’s Risk 🔥
✔ Fluctuations on oil prices
Approximately 79.55% of our revenue is derived from our Oil & Gas clients locally and overseas, even though cost for the services are not directly affected by the fluctuations in oil prices but during rising oil prices the O&G Exploration development and production activities are expected to increase and vice versa, thus we can also conclude that this will also affect this company’s revenue.
✔ Cost of Operations and equipment
Another Risk is that margins are affected by the direct cost of operations which mainly comprises purchases of materials such as machine and equipment parts, consumables, tools and equipment, services provided by suppliers which include a combination of mechanical, electrical and/or instrumentation work, wages and salaries, and professional fees.
✔ Currency Risk
They are exposed to foreign currency risk on sales, purchases and borrowings that are denominated in a currency other than the respective functional currencies of our Group entities as we do not use any hedging instruments in their daily operations.
Director’s Stake 👴
Dato’ Dr. Ir. Mohd Abdul Karim Bin Abdullah = 22.95%
Abdul Kadier Sahib = 18.88%
Awang Daud Bin Awang Putera = 10.65%
Kumpulan Wang Persaraan (Diperbadankan) = 7.89%
(Total = 60.37%)
From the above we can conclude that director’s interest is aligned with our interest, they have quite a big stake in the company thus they will do their best to grow the company.
Part 2 will be more in depth in their financial analysis, discussing on the company’s profitability and intrinsic value. Stay Tuned! Please like and share for more of these kinds of post. 🤩
**Disclaimer : This post is for informational and educational purposes only. Investors should make their own informed decision to buy / sell the stock. We do not promote any kind of buy call or sell call on this post. Please do your own due diligence before investing or trading.