Marine logistics operator Orkim Berhad is well-positioned for sustained growth, backed by long-standing relationships with major energy companies, a dominant domestic market share, and a strong pipeline of recurring charter contracts, according to a new report by Malacca Securities.
The research house assigned a fair value of RM1.16 per share, representing a 26.6% upside from the stock’s recent price of RM0.92. The valuation is based on a 12.0x price-earnings multiple applied to Orkim’s forecast FY2026 earnings per share of 9.70 sen.
These core customers have historically contributed over 90% of Orkim’s revenue, secured through multi-year contracts lasting between 2 and 10 years. Analysts say the strong client mix enhances revenue visibility and boosts the company’s credibility when bidding for new contracts.
The group operates across 93 loading and discharge points in Malaysia, Singapore, the Philippines, Indonesia, Brunei and China. Its fleet of clean petroleum product (CPP) and LPG tankers recorded more than 6,500 port calls during the review period.
This broad operational network allows Orkim to service both fixed domestic routes and flexible regional voyages depending on customer demand.
Malacca Securities noted that the domestic CPP and LPG marine transport sector is difficult for newcomers to penetrate. Orkim’s long operating history, compliance track record, and industry awards give it a competitive edge over potential entrants.
Recurring revenue accounts for 60% to 95% of annual turnover, driven by long-term arrangements such as:
- Time Charter contracts
- Contract of Voyage Charter (CVC)
- Contract of Affreightment (COA)
As of the latest practicable date, Orkim holds RM614.2 million in Time Charter contract value, providing robust earnings visibility for the coming years.
According to an industry report (IMR), Orkim commands 56% market share of Malaysia’s registered CPP tankers and 12% of the nation’s refined petroleum products transported in 2024
Growth in Malaysia’s downstream energy demand, ongoing Petronas investment commitments, and large industrial developments such as the Pengerang Integrated Petroleum Complex (PIPC) are expected to support future transportation needs.
Malacca Securities expects Orkim to benefit from its entrenched customer base, solid market share and long-term contracted revenue, positioning the group for steady growth through FY2026.
