Oiltek International, a leading Agri-Tech and renewable energy solutions provider, has reported record-high earnings for the first half of 2025, with a net profit of RM14 million, marking a 38% year-on-year increase. The company’s performance was bolstered by strong margin expansion in its refinery segment, despite a flat revenue of RM101 million compared to the previous year. The results, which account for 41% of the full-year forecast, were in line with expectations, as the first half typically contributes 35-40% of annual performance.
The company’s gross profit surged by 39% to RM32.4 million, with a gross margin increase of 12.8 percentage points, largely due to contributions from its edible and non-edible oil refinery segment. Oiltek has also declared a 67% higher interim dividend, reflecting its strong financial health and commitment to shareholder returns.
Oiltek’s robust orderbook, valued at RM332.5 million as of 30 July 2025, underscores its earnings visibility and positive outlook, says UOBKayHian. The company is well-positioned to capitalise on the growing global demand for oils and fats, as well as the increasing investments in biodiesels and sustainable aviation fuel (SAF). The global fats and oils market is projected to grow significantly, providing ample opportunities for Oiltek to expand its market presence.
UOBKayHian maintained its “Buy” rating, with a revised target price of S$1.05, up from S$0.86, based on a 33x 2026 forecast price-to-earnings ratio. This adjustment reflects the company’s improved trading liquidity and potential dual listing, which could enhance investor access and support a re-rating. Looking ahead, Oiltek is poised to benefit from higher-than-expected order wins and improved gross margins, driven by economies of scale.
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