PETALING JAYA: Orkim Bhd
remains an appealing investment for investors seeking stable earnings, defensive tanker exposure and attractive dividend yields, says BIMB Securities Research.
In a note to clients, the research house said the marine transportation group’s contract-based business model offered protection against higher bunker costs and earnings volatility, making it a relatively defensive exposure within the shipping sector.
Orkim, which recently acquired Opal, an oil and chemical tanker for 157 million yuan, will see the group’s fleet increase to 20 vessels, while total deadweight tonnage will rise to 267,024 tonnes. This represents a 5.5% increase in carrying capacity.
“We view the acquisition of Opal as strengthening fleet capacity, supporting management’s growth strategy, and providing additional earnings upside potential from new charter opportunities,” BIMB Research said.
There is a potential upside to the daily charter rate (DCR) if the vessel secures new contracts at prevailing market rates.
“Our channel checks suggest that the current DCR for Orkim Garnet and Opal equivalent is about RM60,000 per day versus RM55,300 per day of our financial year 2026 (FY26) assumption,” it added.
Assuming the vessel is delivered in October 2026 and deployed shortly thereafter, BIMB Research estimated that the acquisition could contribute an incremental annual revenue of RM4.6mil for FY26 and become more meaningful from FY27 onwards of around RM19.3mil.
This is based on a utilisation rate of 91.5% and a conservative RM55,000 to RM56,000 per day charter rate.
Funding via the existing sukuk programme should avoid immediate equity dilution, although finance costs will increase modestly, said the research house.
BIMB Research maintained a “buy” call on the stock with an unchanged target price of RM1.05.
