Oiltek International - CGSI Research 2025-01-03: Order Book Uptrend To Drive Our 25.1% EPS CAGR Forecast

• We initiate coverage on Oiltek International (SGX:HQU) with an ADD rating and target price of S$1.32, representing a 30.7% upside potential from the closing Oiltek's share price on 2 Jan 25.

Investment Thesis

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• its further order win potential from higher requirements for biodiesel blending in Malaysia and Indonesia; and
• the longer-term demand for refining plants involved in SAF.

25.1% EPS CAGR forecast over FY23-26

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• We expect gross profit margins of between 21.25% and 22.25% over FY24-26F, leading to a 25.1% EPS CAGR over the same period.

Valuation methodology

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Above is an excerpt from a research report by CGSI Research.
Clients of CGS International may access the full PDF report @ https://itrade.cgsi.com.sg/.

Read also CGSI's most recent report:
2025-02-12 Oiltek International - Order Book Supports FY25-26F Earnings.

Previous report by CGSI:
2025-01-14 Oiltek International - Continuing To Grow The Business.

Price targets by 3 other brokers at Oiltek Target Prices.

Listing of research reports at Oiltek Analyst Reports.

Relevant links:
Oiltek Share Price History,
Oiltek Announcements,
Oiltek Dividend Payout Dates & Corporate Actions,
Oiltek News