UOB Kay Hian Research analysts John Cheong and Heidi Mo are staying “buy” on Oiltek International with a higher target price of 80 cents, 66% higher than their previous forecast of 48 cents, as the renewable energy equipment provider’s order book “remains near record high”.

Oiltek secured RM207 million in new orders in 2024, bringing its orderbook to RM355 million as of Feb 12, compared to RM361 million as at February 2024. This is expected to be fulfilled in the next 18 to 24 months, say Cheong and Mo in a July 15 note.

The UOBKH analysts expect even more order wins as customers gain “more clarity” on US tariffs. “Oiltek is in a better position to win more new orders as some of its customers have been pushing back their capex spending due to the tariff uncertainties. Given that four months have passed since the start of the US tariff policy on April 20, Oiltek’s customers are starting to get more clarity on the potential impact of the US tariffs. Hence, their capex spending for new plants and equipment should resume.”