- Oiltek (SGX:HQU)'s FY24 Revenue and PATMI were ahead of expectations at 103%/115% of our FY24e forecast. 2H24 PATMI jumped 58% y-o-y to RM19.4mil, largely driven by expansion in gross margins. Geographical mix and project timing raised 2H24 gross margins by 7% points y-o-y to 27.4%.
- - Read this at SGinvestors.io -
- We raised FY25e earnings forecast for Oiltek by 19% to RM35mil.
The Positive
Margins continue to climb.
- - Read this at SGinvestors.io -
The Negative
Order book & revenue momentum slower.
- Revenue growth slowed to 4% y-o-y from 1H24’s 31%. Order book has contracted after the stellar RM322mil new orders in FY23 (FY24: RM207mil new orders).
- We expect the order book to be replenished from refinery and biodiesel contracts. The focus in FY24 has been to complete the huge order book secured over the past 2 years.
Outlook
- Read more at SGinvestors.io.
