Broker: CGS International
Date of Report: April 14, 2026
Excerpt from CGS International report.
Report Summary
- Stock: Oiltek International Ltd (OTEK SP)
- Action: ADD (Buy recommendation reiterated)
- Target Price: S\$3.38 (Previous: S\$0.94)
- Current Price: S\$2.08
- Upside: 62.5%
- Key Idea: Oiltek announced a Heads of Agreement (HOA) for a RM1.4bn contract to build a Sustainable Aviation Fuel (SAF) facility in Malaysia. If this HOA is converted into a definitive agreement, Oiltek’s order book could hit a record RM1.75bn, driving a projected 300% year-on-year EPS growth in FY27F. This would result in a quadrupling of net profit to RM167m in FY27F. The strong growth outlook supports the significant target price upgrade.
- Implications: Successful execution could pave the way for similar large projects and potential recurring revenue streams. Risks include order cancellations, execution delays, FX risks, and raw material disruptions.
- Consensus: 5 Buy, 0 Hold, 0 Sell
above is an excerpt from a report by CGS International. Clients of CGS International can be the first to access the full report from the CGS International website : https://www.cgs-cimb.com
