Serba Dinamik Annual Report 2016

010 SERBA DINAMIK HOLDINGS BERHAD Company No.1167905 P CEO STATEMENT (Cont’d) MILESTONES I am proud to present the first Annual Report of Serba Dinamik Holdings Berhad (“Serba Dinamik Holdings” or the “Company”). It has been an eventful year for the company and our subsidiaries (“Group”) as we have marked several notable milestones along the way. On 25 May 2016, Serba Dinamik Holdings assumed the role as a holding company of the group to undertake the Group’s IPO that resulted in our successful debut on the Main Market of Bursa Malaysia Securities Berhad on 8 February 2017. Our shares entered the first day of trading at RM1.53, which was higher than our targeted issue price of RM1.50. Our share price peaked at RM1.80 within our first month of trading. I believe that I speak for all of us at Serba Dinamik Holdings Berhad that we are very pleased with the fruition of our years of hard work in preparation for this significant break through. I am also pleased to share that the Group’s business expansion plans are on track with the success of our first strategic acquisition subsequent to listing, namely the KAJV. On 21 February 2017, the Group through our wholly-owned subsidiary, Serba Dinamik Sdn. Bhd. (“SDSB”), acquired 40% of the total issued share capital in KAJV, which granted us an EPCC contract worth RM289.70 million as well as a 40% share of KAJV’s profits derived from a RM1.30 billion contract value awarded to KAJV by the state government of Terengganu on 28 April 2016. The Group is also in stages of discussion with potential target companies for further acquisitions in the coming financial year. Going forward, these successful acquisitions are intended to enlarge and diversify the Group’s revenue streams in the long run by leveraging on our O&M and EPCC capabilities. In review of our financials, the Group’s performance has been largely driven by Serba Dinamik Group Berhad and our subsidiaries. We are glad to share that the the Group closed FYE2016 with a total revenue of RM2.17 billion, an increase by 54.6% as compared to RM1.40 billion posted for the previous financial year (“FYE15”). Subsequently, the SD Group’s Profit After Tax (“PAT”) was marked at RM245.8 million, an increase of 57% as compared to RM156.56 million posted in FYE2015. The Group also projected a significant Quarter-on-Quarter improvement of 45.7% in revenue at RM745.1 million for the fourth quarter ended 31 December 2016 (“Q4FY16”) as compared to RM511.51 million registered for the preceding quarter ended 31 September 2016 (“Q3FY16”). The revenue improvement was mainly driven by the Group’s O&M segment and its EPCC segment, contributing 89% and 10.8% respectively to the total revenue. Consequently, we registered a substantial increase in Profit Before Tax (“PBT”) and PAT of RM103.15 million and RM92.01 million respectively in Q4FY16. Both PBT and PAT posted growth rates of 113.2% and 101.1% respectively as compared to RM48.38 million and RM45.75 million correspondingly disclosed for Q3FY16.