The latest win is a testament of Serba Dinamik’s position as one of the major
players in the oil & gas industry. Assuming a burn rate of approximately RM400.0m
in December 2020, Serba Dinamik’s outstanding orderbook will come at RM18.3bn
by end-2020; within our assumption of RM18.5bn.
The FBM KLCI delivered another commendable performance amid optimism that
Malaysia economy is widely touted to emerge from the Covid-19 pandemic slump
following the recent progress of Covid-19 vaccine developments. Still, we reckon
that the strong upsides may also attract quick profit taking activities over the
interim. At the same time, the lower liners are set for the extended rally that is
largely driven by the ample of liquidity as investors continue to seek for higher
yields investments.
The FBM KLCI edged mildly lower as sentiment turned downbeat as investors booked in gains from the previous session rally. While the local bourse is demonstrating some mild weakness, we reckon that the general recovery trend is still intact as the attention remains focus on the pace of economic recovery. The positive development over the Covid-19 vaccine will also continue to aid the recovery progress. Meanwhile, the lower liners are expected to charge higher, driven by the ample liquidity with the equities market remain in favour.
The proposed AME REIT would also provide stable and recurring income to investors, with at least 90.0% of its income to be distributed as dividends to unitholders. We note that slightly more than half of the current tenants of the industrial properties has more than 5 years of lease under their agreements. Additionally, AME REIT is expected to benefit from lower tax rate compared to prevailing corporate tax rate at an average of 23.4% recorded over the past 4 years.
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