Oiltek International has announced record earnings of RM29.6 million for FY2024, marking a 55% increase. Revenue also reached a record high of RM230.3 million, reflecting a 14.5% rise from FY2023.
The company’s strong performance is primarily driven by its core business of constructing refineries for both edible and non-edible oil sectors.
In FY2024, Oiltek secured RM207 million in new orders, bringing its total order book to RM354.9 million. As of December 31, 2024, the company maintains a healthy cash balance of RM106.1 million with zero debt.
Oiltek has proposed a final dividend of 1.8 cents, bringing its total full-year payout to 2.7 cents. This represents a payout ratio of 44.4% and a more than two-thirds increase compared to FY2023.
Looking ahead, Executive Director and CEO Henry Yong Khai Weng expressed confidence in the company’s growth prospects:
“As we enter the new financial year, we remain optimistic about our business and committed to driving growth while delivering long-term, sustainable value for our shareholders.”
The target price is set at $1.33 (8% upside), with a subsequent goal of $1.60 (30% upside), both of which are expected to be achieved.
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