PETALING JAYA: Analysts are optimistic about SumiSaujana Group Bhd
, a manufacturer of oil & gas (O&G) specialty chemicals, given its strong customer retention, product quality, in-house custom formulation capabilities and diversified income streams across global markets.
Rakuten Trade Sdn Bhd noted that SumiSaujana has been expanding its global presence by supplying drilling fluids to prominent O&G players, including Baker Hughes, as well as clients across Malaysia, Asia Pacific, the Middle East, Africa, Europe and the Americas.
Since 2016, the company has been a Petroliam Nasional Bhd (PETRONAS)-licensed manufacturer, which enables participation in PETRONAS tenders, it added.
“To meet rising demand, SumiSaujana plans to enhance efficiency and capacity by acquiring an existing factory in Puncak Alam and installing a solar photovoltaics system. With a current utilisation rate of over 75%, the group has added new equipment including reactors and storage tanks, thus increasing annual capacity by 19,600 tonnes (125.6%).
“It will also acquire a new warehouse and office buildings, and establish a new lab to foster innovation and product development, supported by new technical hires,” the research house said.
Rakuten has a “buy” call on the stock with a fair value of 30 sen, premised on 13 times price-to-earnings (PE) ratio over FY25 earnings per share, or circa a 40% discount to the Industrial Production Index’s PE of 18 times, considering prevailing market conditions. SumiSaujana is set to list tomorrow.
