RHB Investment Bank Bhd (RHB Research) has initiated coverage on Orkim Bhd with a ‘Buy’ call and RM1.14 target price, implying 47.9% upside from its reference price of 77 sen, backed by recurring earnings visibility and fleet expansion.
RHB Research said Orkim’s position as a leading local owner-operator of clean petroleum product and LPG tankers, coupled with long-standing relationships with major energy companies, provides a solid base for sustainable charter income.
The research house expects Orkim’s core net profit to grow at a 5% compound annual growth rate from FY25 to FY28, reaching RM95 million in FY27 and RM99 million in FY28.
Growth is expected to be driven by higher daily charter rates, increased operating days and contributions from new vessels Orkim Jade and Orkim Ruby.
Earnings visibility is further supported by 19 subsisting contracts and a RM593 million time-charter order book, while fleet utilisation has remained around the 90% level.
RHB Research valued Orkim at 12 times FY27 forecast earnings, citing its strong profitability, high fleet utilisation, long-term contracts and resilient cash flow generation. It added that the delivery of Orkim Jade and Orkim Ruby in the first quarter of 2027 should provide further capacity and earnings upside.
