PETALING JAYA: Rakuten Trade initiates coverage on United Asiapac Energy Bhd (Unipac) with a “buy” recommendation and a fair value of 50 sen.
It cited the oil and gas services provider’s expansion plans, improving margins and strong credentials with Petroliam Nasional Bhd (PETRONAS) as key growth drivers.
“We expect Unipac to register core profit after tax and minority interest of RM13.5mil and RM18.2mil for the financial years ending May 2026 (FY26) and FY27,” the research house said.
It valued the stock at 15 times FY27 forecast earnings per share, in line with the FBM Small Cap average.
Unipac is a specialised upstream oil and gas services provider focusing on well‑ intervention solutions.
Its core businesses include fishing services, which retrieve stuck or lost equipment from oil and gas wells, plug and abandonment services to permanently seal depleted wells, as well as sidetracking and other specialised intervention works.
“The group’s services span the entire hydrocarbon well lifecycle, from drilling and production to eventual well decommissioning, making well intervention an essential and recurring component of upstream oil and gas operations,” Rakuten Trade said.
The research house said the company is licensed by both PETRONAS and Petroleum Sarawak Bhd, allowing it to undertake projects across Peninsular Malaysia, Sabah and Sarawak.
As at Feb 28, 2026, it had secured RM61.1mil in purchase orders, of which RM27.3mil remained outstanding and is expected to be recognised through February 2027, providing near‑term earnings visibility.
To support its next phase of growth, Unipac plans to channel a substantial portion of its RM48.72mil initial public offering (IPO) proceeds into expanding its operational capacity.
“The group will invest RM23.26mil to acquire additional well‑intervention equipment, enabling it to undertake more projects, reduce reliance on rented tools, improve mobilisation efficiency and enhance margins,” Rakuten Trade said.
The company also plans to recruit additional technical and commercial personnel, introduce new well‑intervention solutions, strengthen working capital and acquire a new corporate office.
Rakuten Trade expects the expanded equipment fleet and broader services offering to help the company secure more work from both existing and new upstream operators, while strengthening customer relationships through cross‑selling opportunities.
The research house also highlighted Unipac’s financial position, noting that the group had net gearing of 0.09 times as at end‑February 2026.
Following the IPO, it expects the company to move into a net‑cash position, providing greater financial flexibility to pursue its expansion plans.
