PETALING JAYA: Deleum Bhd’s business prospects are expected to improve moving forward, says AmInvestment Bank Research.

       Over the years, the group’s business venture has progressed from merely an agent of equipment and services providers to joint ventures, partnerships and self-operated operations.

       The group’s business is classified into three main segments namely power and machinery, which accounts for 70% of its financial year 2021 (FY21) revenue, oilfield services at 19% and integrated corrosion solution at 11% respectively.

       In its latest report, AmInvest Research described the group as “a grossly undervalued oil and gas cash generator”.

       The research house, which is initiating a coverage on Deleum, has maintained a “buy” call on the stock with a fair value of 90 sen per share, pegged to FY22’s forecast price to earnings ratio of 12 times together with a 3% discount to its Environmental, Social, and Governance rating of two stars.