Oiltek International (HQU) Q3 2024 TU earnings summary

Executive summary

• 3Q2024 revenue rose 14.5% YoY to RM67.60m and profit after income tax rose 83.2% to RM8.98m; 9M2024 revenue increased 23.8% to RM168.05m and profit after income tax rose 63.9% to RM19.26m.

Financial highlights

• 3Q2024 gross profit increased 75.2% YoY to RM19.91m; profit before income tax rose 83.2% to RM12.00m.

• 9M2024 gross profit increased 57.6% YoY to RM39.42m; profit before income tax rose 62.7% to RM26.07m.

Outlook and guidance

• Overall business outlook expected to remain positive, driven primarily by growth in the industries served, barring unforeseen circumstances and despite geopolitical tensions and global economic volatility.

• Order book from unfulfilled signed contracts, confirmed variation orders and letters of award was RM400.9m at 19 Nov 2024, expected to be fulfilled over 18–24 months, barring unforeseen circumstances.

• Plans include pursuing larger projects and geographic expansion, while developing processes and solutions for customers’ sustainability needs.