Serba Dinamik Annual Report 2016

044 SERBA DINAMIK HOLDINGS BERHAD Company No.1167905 P 5. FORWARD LOOKING (CONT’D) After our listing exercise, the focus now is on expanding our business through industry diversification, market expansion and broadening our product and services. By leveraging on our established experience in asset maintenance services, we believe that our upcoming expansion plans will achieve great success, further driving the Group to accomplish bigger milestones. Our strategies to achieve this is through strategic acquisition/ investment or adopting an asset ownership business model. The acquisition of minority stake of KAJV in February 2017 as mentioned in the previous section was our first step to diversify our business into other industries. It will provide growth opportunities for us as well as showcase our competency to the industry. In addition to the revenue derived from the EPCC contract that we obtained out of this acquisition, it will also provide a recurrent income from the share of profit of KAJV as well as opportunities to grow our O&M business in the water treatment industry. Our market expansion plan basically focuses on expanding our existing markets as well as looking for new markets in different geographic areas. We have always believed that there are more opportunities for our business to grow in the middle east and this is represented by our track record in previous years. This also enables us to explore nearby regions such as the African continent which we do not have any presence yet. The African continent possesses rich resources and offers a lot of opportunities in the oil & gas and power generation industries. MRO of rotating equipment and IRM of Process & Static equipment have always been our core competencies. We are considering to broaden our expertise into different industries such as MRO of large diesel engines for the marine industry and moving into specialised areas that we are currently not involved in, such as MRO of hot section of gas turbine and IRM of rotor blade of gas turbine. With the plan we have set, we strongly believe that the group is well-equipped to sustain our business and able to achieve our vision to excel globally as a total technical engineering and commercial service provider. DIVIDEND Depending on the various factors as outlined below, it is the intention of the Board to adopt a dividend pay-out ratio of at least 30% of our PAT attributable to the owners of our Group for each financial year, excluding any unrealised income from adjustment due to accounting policies that are non-cash in nature: 1. Our level of cash, gearing and return on equity and retained earnings; 2. Our expected financial performance; 3. Our projected levels of capex and other investment plans; 4. Our working capital requirements; and 5. Any contractual restrictions and/or commitments MANAGEMENT DISCUSSION AND ANALYSIS STATEMENT (Cont’d)