SERBADK (5279) [s]

*Why Serba Dinamik a nearly recession-proof stock... but investors have not realised it yet Grab it fast before it gets higher*

• The weakness in its share price provides a great chance to add this stock because the Group is a proven winner in both low and high oil prices landscapes.

• The Group will continue to operate as normal during Malaysia’s 14-day movement control order because it needs to deliver continuous support to its clients in critical areas of the O&G industry to ensure minimal or no disruption to their operations.

• Volatility in crude oil prices will not have a long-term impact on its O&M business. *Maintenance is still required as long as productions are on-going. In fact, the Group could benefit from higher maintenance demand from the Middle East as Saudi ramps up the production*

• Serba currently has an outstanding orderbook of RM10.7 billion, *which will be more than enough to provide earnings visibility for two years. It can even enough to chart another new profit height this year despite the global business slowdown*

• Its orderbook target of RM15 billion by end-2020 remains intact with crucial maintenance work and with the Pengerang Integrated Complex starting up

• ALL brokers in town have maintained their *BUY calls on the stock with FY20 TP in a range of at least RM2.50 to RM3.05*, which implies an upside target of 79%-118%

SERBADK 世霸主要业务是管理及维修油气相关业务和EPCC 业务. 公司业务除了在大马还有分布在其他石油出产的国家. 基本面十分健康,老板也大量持有股权, 而且也派发蛮不错的股息. 公司最近宣布手头上已累计100亿订单, 放眼明年可以达到150亿订单. 证明这2-3年公司有了盈利担保.

如果油价稳定和订单持续增长, 蛮适合长期投资