Paul Chew of Phillip Securities has kept his 'buy' call on Oiltek International following the winning of a RM45.5 million contract in Latin America, which opens up the possibility of more contracts in this market which is a leading producer of palm oil besides Malaysia and Indonesia.
According to Oiltek, the new contract involves the design, fabrication, delivery, testing and commissioning of one new 400 metric tonnes per day plant required for various processing activities.
This new contract brings the cumulative new contracts secured in this current FY2024 ending December to RM197.8 million, and its total order book to a record RM400.9 million.
"We believe the current wave of orders includes more turnkey projects and an investment cycle underway in Latin America," states Chew in his Nov 1 note.
His unchanged target price of 70 cents is pegged to 15x Fy2024 earnings.
As at 11.59 am, Oiltek changed hands at 57 cents, up 0.88%.
