RAKUTEN Trade has accorded ACE Market-bound Elsa Bhd a “buy” rating with a fair value of 33 sen which is 43.5% premium to the oil & gas services and equipment (OGSE) solutions provider’s initial public offering (IPO) price of 23 sen.
The premium is based on 10x price-to-earnings ratio (PER) of Elsa’s peers’ average size over the group’s FY2027F earnings per share (EPS) premised on (i) aggressive expansion plan; (ii) strong PETRONAS credentials; and (iii) fast growing robotic business.
Elsa which boasts more than 20 years of operating experience in Malaysia’s energy industry has evolved from a conventional oilfield services provider into a diversified technology-enabled OGSE platform, according to the research house.
“Today, the group is offering a broad range of services that include (i) oilfield service solutions, (ii) digital solutions, (iii) robotics and engineering solutions and (iv) talent solutions,” observed analyst Thing Pak Leng in a recent IPO note.
“We expect Elsa to register core PATMI (profit after tax and minority interests/net earnings) of RM11.9 mil and RM13.9 mil for FY2026F and FY27F.”
Rakuten Trade is farther impressed by the positioning of Elsa which is slated for listing on Tues (June 16) as a PETRONAS-licensed provider of products and services to Malaysia’s O&G industry.
“The group primarily acts as a main contractor, managing projects from planning through to execution and delivery. Its in-house project managers and site engineers oversee project implementation to ensure quality, efficiency and timely completion,” highlighted the research house.
In addition to expanding its robotics capabilities, Elsa plans to strengthen its oilfield services and digital solutions businesses through the recruitment of more specialised consultants and technical personnel.”
Elsewhere, Rakuten Trade also pointed to Elsa’s plan to utilise portion of its IPO proceeds towards its manpower requirements for both current and future projects, thus allowing it to scale up operations and undertake larger contracts.
“Elsa aims to accelerate growth by expanding its technology-driven businesses, particularly the robotics and engineering solutions segment,” shared the research house.
Part of the IPO proceeds will be used to strengthen its in-house autonomous underwater vehicle (AUV) deployment capabilities and acquire additional drones for inspection and surveillance activities.
These investments will enable the group to (i) undertake more projects internally, (ii) improve operational efficiency; and (iii) enhance its competitiveness within the rapidly growing automation and robotics space.
Moving forward, Rakuten Trade expects Elsa to deepen its presence in digital solutions by expanding offerings in cybersecurity, cloud services, digital learning platforms and industrial digitalisation.
This will enable the group to benefit from increasing digital transformation initiatives undertaken by O&G operators seeking greater operational efficiency and remote monitoring capabilities.
As it is, Elsa currently works with 27 multinational technology partners with plans afoot to further strengthen these collaborations.
“This enables Elsa to introduce new technologies and specialised solutions without incurring substantial research and development costs, while broadening its service offerings to customers,” justified Rakuten Trade.
“Elsa maintains a healthy balance sheet with a net cash position and is expected to remain in a net cash position post listing.” – June 14, 2026
