“If you are waiting for the stock to drop to a more ‘palatable’ PE, well it hasn’t happened yet during the life of this stock. When it comes to Oiltek, perhaps PE may not be the right valuation metric. Use PH – Price to Henry,” jokingly said one investor.He is referring to Executive Director and Chief Executive Officer of Oiltek International Limited, Henry Yong Khai Weng.
By TEE LIN SAY
linsaytee@suketv.com
28 April 2026, 11:00am
SHAH ALAM: - Singapore Main Board-listed Oiltek International Limited is currently one of Singapore’s best-performing small-cap stocks on the Singapore Exchange, having surged to an all-time high of S$2.47 from S$0.73 in February.
This Malaysian-based company has gained over 250% in less than two months.
The catalyst for this is its entry into a Sustainable Aviation Fuel (SAF) project in Sabah, Malaysia.
In early April, Oiltek entered into a Heads of Agreement with Brunei-based Bioseaga Industries Sdn Bhd to build a US$350 million (RM1.41 billion) SAF plant in Sabah.
This could potentially expand the company’s order book to roughly RM1.76 billion if the definitive agreement is entered into.
Under the HOA, Oiltek will act as the exclusive contractor for the project, with the potential to take an equity stake at a later stage.
As of April 27, Oiltek’s share price closed at S$2.14.
So the main question is this: Is it still worth holding on to Oiltek shares?
The stock is now trading at a staggering price-earnings (PE) ratio of some 100 times (x), based on its financial year ended Dec 31, 2025 (FY2025) historical numbers.
Oiltek provides integrated refinery process and engineering solutions across the global vegetable oils value chain.
Its operations span edible and non-edible oil refineries, renewable energy, and product sales and trading.
The Henry Factor
CGS Securities is probably the most aggressive research house, having upgraded the stock to S$3.38 on April 14. Even then, this is based on an FY26 PE of 66 times.
Meanwhile, Phillip Capital Securities is slightly more conservative, upgrading the stock to S$2.72 in its report dated April 7. This still puts the stock’s PE at 49.9x for FY26.
However, whichever way one looks at it, Oiltek’s PE remains high even with upgraded target prices.
“Speaking just on our share price performance, technically, after taking into account our bonus issue, Oiltek shares have actually gone up by almost 30x since being listed… So, not to be boastful in any way, but our share price going up this way is not something extremely out of the ordinary; the share price performance over time reflects the company’s execution and growth,” says Yong rather sheepishly.
Some investors and analysts who have been following Oiltek since 2023 and have attended most of Oiltek’s analyst briefings weigh in on the stock’s sustained performance, and why funds may continue to favour this agritech company.
“If you are waiting for the stock to drop to a more ‘palatable’ PE, well it hasn’t happened yet during the life of this stock. When it comes to Oiltek, perhaps PE may not be the right valuation metric. Use PH – Price to Henry,” jokingly said one investor.
He added that Oiltek has been delivering on the growth front. Oiltek has grown by double digits (27%) over the last five years, and gross profit margins are around 19% to 32%.
“It also continues to be in a net cash position… So I guess these factors, besides the strong leadership, have supported institutional investor confidence,” concedes the investor.
When Yong first joined Oiltek in 2008, Oiltek’s net tangible assets were approximately RM13 million.
By the time of its listing on the SGX Catalist Board in March 2022, the company’s market capitalisation had grown to S$34.5 million (RM108 million).
As of April 27, Oiltek’s market capitalisation is approximately S$918 million (RM2.87 billion), underscoring its evolution from a small-cap industrial player into a billion-ringgit enterprise.
Throughout this growth journey, the company has also continued to maintain a net cash position with no bank borrowings.
Aside from Oiltek’s recent SAF project, Oiltek now has more than 750 clients across 38 countries on five continents.
Yong says that one of the reasons Oiltek has strong repeat orders from its clients is its value in innovation, flexibility, and sincerity in doing business.
“The base case is always to provide good support services at competitive pricing.
“When I provide a reasonable price for the client, it is not because I want to sell to them. It is so that they can buy from me and fulfil what they want to do in their business. My clients always become my close partners. The relationship is never just transactional,” says Yong.
Web Edited by YAN PHENG LIANG
yanphengliang@suketv.com