14-02-2025
Oiltek International Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions
Oiltek International Limited (Catalist:HQU) last week reported its latest full-year results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Oiltek International reported RM230m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of RM0.21 beat expectations, being 9.9% higher than what the analysts expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
See our latest analysis for Oiltek International
Taking into account the latest results, the most recent consensus for Oiltek International from three analysts is for revenues of RM281.9m in 2025. If met, it would imply a substantial 22% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to swell 15% to RM0.24. In the lead-up to this report, the analysts had been modelling revenues of RM279.2m and earnings per share (EPS) of RM0.22 in 2025. Although the revenue estimates have not really changed, we can see there's been a nice gain to earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.
The consensus price target rose 11% to S$1.43, suggesting that higher earnings estimates flow through to the stock's valuation as well. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Oiltek International, with the most bullish analyst valuing it at S$1.48 and the most bearish at S$1.37 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Oiltek International is an easy business to forecast or the the analysts are all using similar assumptions.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Oiltek International's past performance and to peers in the same industry. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 22% growth on an annualised basis. That is in line with its 24% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 8.5% annually. So although Oiltek International is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Oiltek International following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Oiltek International going out to 2027, and you can see them free on our platform here.
Before you take the next step you should know about the 2 warning signs for Oiltek International that we have uncovered.
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