THERE was no respite for Serba Dianmik Holdings Bhd today (June 29) as it failed to carry through this morning’s (June 29) seemingly a “bullish buying momentum”, only to head further south at the commencement of the afternoon session.
Many day traders and speculators saw their joy short-lived as heavy profit taking activity kicked in after the stock of the integrated oil & gas (O&G) service provider spiked to an intraday high of 39 sen.
But even amid heavy volume of 834.88 million shares which made the counter yet again the day’s most actively traded, the closing price was an anti-climax – a fall of 0.5 sen or 1.54% to 32 sen or just shy of its all-time low of 31.5 sen.
Recall that the stock tanked 20.73% or 8.8 sen to close at 32.5 sen amid a gargantuan volume of 612.7 million shares yesterday (June 28).
It has been a downhill journey for Serba Dinamik since resuming trading on May 31 following a two-day suspension after its former external auditor KPMG PLT flagged unresolved accounting matters pertaining to its FY2020 statutory audit,
For the record, Serba Dinamik was last traded at RM1.16 which gave the company a market capitalisation of RM6 bil before “all hell broke loose” for the company ever since.
As it stands today at RM1.19 bil, almost 80% of Serba Dinamik’s market cap has already been wiped out over the past 29 days.
From the civil suit filed against KPMG which eventually led to the external auditor’s resignation to the recent quitting of five independent directors, Serba Dinamik’s corporate governance has inevitably come under heavy scrutiny although the company has reasoned that its legal action against KPMG is justifiable.
The latest development is that the company is doing its utmost best to comply with Bursa Malaysia’s directive to appoint an accounting firm soonest possible to commence a special independent review to address the concerns raised by its former external auditor.
Uncertainties surrounding the stock have prompted research houses to slash both their ratings and target prices of Serba Dinamik yesterday (June 28) despite the company having posted an unaudited net profit of RM112.52 mil for its 5Q FY6/2021 ended March 31, 2021 on the back of RM1.38 bil in revenue:
- TA Securities Research maintained “sell” @ 28 sen (from RM1 previously)
- Hong Leong IB Research downgraded company to “sell” (from “hold” previously) @ 28 sen (from 78 sen previously)
- PublicInvest Research maintained “neutral” @ 44 sen (from RM1.39 previously)
- Kenanga Research “under review” with a hypothetical “floor” fair value of 32 sen
- AmResearch maintained “sell” at 53 sen (currently “under review”)
Yesterday, EPF disposed of a further 2.04 million Serba Dinamik shares in the open market to reduce its stage in the company to 7.58% from 10.18% prior to the company resumed trading on May 31.
Apart from EPF, other institutional investors in Serba Dinamik include Permodalan Nasional Bhd (PNB) through its unit Amanah Saham Nasional Bhd, Kumpulan Wang Persaraan DiPerbadankan (KWAP) and the State Financial Secretary Sarawak.
The lack of buying momentum was also reflected on the share price of KPower Bhd and Sarawak Consolidated Industries Bhd (SCIB which are linked to Serba Dinamik by virtue of its group managing director/group CEO Datuk Mohd Abdul Karim Abdullah being their non-executive chairman and major shareholder.
KPower closed 1.5 sen or 2.4% higher to 64 sen after clinching an intraday high of 73.5 sen with 60.98 million shares traded, while SCIB was barely up 0.5 sen or 1.1% to 46 sen after surging to an intraday high of 53.5 sen with 64.94 million shares traded. – June 29, 2021
