- Oiltek’s 2024 net profit of RM30m (+55% y-o-y) beat our and consensus estimates by 12% and 14% respectively on better-than-expected margins. The edible & non-edible oil refinery segment continues to be the key growth driver, surging 23% y-o-y from new projects secured.
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2024 earnings beat on better-than-expected margins; higher dividend proposed.
- Oiltek International (SGX:HQU) recorded 2024 revenue of RM230.3m (+15% y-o-y), largely in line with our and consensus forecasts. However, 2024 earnings of RM29.6m (+55% y-o-y) was 12% and 14% above our and consensus forecasts respectively.
- The earnings beat was due to:
- substantial y-o-y gross margin expansions in 2H24 (+6.8ppt) and 2024 (+4.4ppt), driven by more contributions from the edible & non-edible refinery segment; and
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- A higher final dividend of 1.8 cents was proposed, leading to a FY24 Oiltek's dividends of 2.7 cents (2023: 1.6 cents) or 44.4% payout ratio.
Strong revenue growth from main oil refinery segment.
- Read more at SGinvestors.io.
