PETALING JAYA: Steel Hawk Bhd
’s recent job awards are expected to bolster the company’s earnings prospects in its financial year ending Dec 31, 2025 (FY25).
Maybank Investment Bank (Maybank IB) Research, in a report, noted that Steel Hawk was appointed as a panel contractor by Petroliam Nasional Bhd (PETRONAS) on Nov 12, 2024 to provide construction and modification works for five packages across key regions in Malaysia, as and when required.
“These packages entail 27 of PETRONAS’ downstream operating plant units.
“This may be Steel Hawk’s biggest job win since its inception and the group should be recognising meaningful contributions from this major development, starting from the first quarter (1Q) of FY25 onwards,” said the research house.
Maybank IB Research added that Steel Hawk’s gross profit margins have been steadily improving over time, as it has burgeoned from 24.2% in FY22 to 42.7% in the nine months of FY24.
“Based on its closing price as at Feb 4, 2025, and the latest annualised results of Steel Hawk and that of other industry players, the company trades at a prospective annualised FY24 price-to-earnings ratio of 15.1 times, versus an average of 5.1 times for its peers,” it said.
Steel Hawk closed unchanged at 47 sen last Friday.
The company is a PETRONAS-licensed oil and gas (O&G) services and equipment provider, principally involved in offering onshore and offshore support services for the O&G industry.
Steel Hawk’s business activities cover support for the upstream, midstream and downstream segments of the value chain.
Last week, it secured a contract extension for the provision of onshore facilities maintenance, construction and modification services from PETRONAS Carigali Sdn Bhd.
In a filing with Bursa Malaysia, Steel Hawk noted that the contract is on a call-out basis, which does not have a fixed contract value.
For 3Q of FY24, Steel Hawk’s net profit rose to RM2.85mil from RM1.65mil in the previous corresponding period, while revenue grew to RM20.99mil from RM18.42mil a year earlier.
In a filing on its 3Q earnings performance, the company said it will continue to explore new business opportunities through its current and potential customers.
“The group is cautiously optimistic (that) the development of the downstream sector of the local O&G industry is expected to gain further traction with the continuing investments in the petroleum products (including petrochemicals) industry in Malaysia.
“Moving forward, the group will continue to focus on growing its market share and working towards achieving its management agenda and financial targets,” Steel Hawk said.
