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Many offshore platforms in Malaysia are aging. They require maintenance and crane replacement. This is a great opportunities for service contractors like Handal Energy Berhad, which specialise in offshore crane services and engineering support.
Small Malaysian oil and gas service companies typically trade at around 8x – 12x price-to-earnings (PE).
Assuming Handal returns to profitability with:
Revenue: RM80 million (back to its glory days)
Net margin: 8%
Estimated net profit would be around RM6.4 million.
With 10x PE valuation the share price should be RM0.142 per share (assuming super bull case)