OUT of the blue yesterday, Sarawak Consolidated Industries Bhd (SCIB) found itself ‘breaking out’ from the doldrums or gaping up to emerge the best performer among stocks linked to Serba Dinamik Holdings Bhd founder Datuk Dr Mohd Abdul Karim Abdullah so to speak.
The least fanciful among the three counters in Abdul Karim’a stable (the third being KPower Bhd), SCIB surged 8.5 sen or 13.08% to 73.5 sen with 99.19 million shares traded to give the company a market capitalisation of RM361 mil.
At the same time, KPower was also up 6 sen or 8% to 81 sen with 50.44 million shares exchanged hands to value the company at RM366 mil while Serba Dinamik added 4.5 sen or 10.98% to 45.5 sen with 425.03 million shares traded to give it a market capitalisation of RM1.7 bil.
Recall that SCIB and KPower saw their share price headed south along with the fall of Serba Dinamik following the flagging of certain accounting matters pertaining to the company’s FY2020 statutory audit by the latter’s former external auditor KPMG PLT.
This is despite Abdul Karim dismissing claims that he interfered in the running of both companies save for his presence as non-executive chairman and controlling shareholder with a stake of 36.8% and 32.36% in SCIB and KPower respectively.
The secret to the counter’s sudden recovery-cum-bullish stock price lies in the fact that the company’s fundamentals remain intact and investors getting to accept its link with Abdul Karim, according to a market observer.
‘Based on SCIB’s proven track record, investors are gradually regaining confidence despite the stock’s link to what is touted as Abdul Karim’s fiasco,” he told FocusM.
“At its current price, the valuation is very attractive given SCIB’s strong order book and potential job winning. Bear in mind, the company has also has adopted a dividend policy, thus making SCIB a potential defensive stock.”
Meanwhile, managing director and group CEO Rosland Othman reiterated the company’s commitment to realise its business plans despite progress slowdown due to the COVID-19 pandemic.
“Some domestic projects are ongoing in a moderate pace but more importantly, we remain positive on the business prospect ahead,” he told FocusM. “Our ultimate commitment is to rise above that challenge to deliver value to stakeholders, especially to our shareholders’
Rosland also envisages more positive newsflow related to progress of tender the group’s tender submission.
“Our business plan is to focus on the domestic segment which could give us more defensive income,” he pointed out.
“There is a very promising outlook with regard to our domestic tender book especially in Peninsular Malaysia. We are proud to say that SCIB has emerged one of the best candidates given our expertise and proven track record.” – July 16, 2021
