Is Koh Brothers Eco A Cheap Way to Own Hot Stock Oiltek?

The stock price of Oiltek International launched into the stratosphere while that of its parent, Koh Brothers Eco Engineering, has barely taken off.

Oiltek has hit $1.87 and Koh Eco rose to 9.5 cents, displaying a massive valuation gap that makes the latter an obvious bargain.

Why is Oiltek flying? The company has just announced a potential US$350 million (RM1.65 billion) contract with Brunei-based BioSeaga Industries. The parties have signed a Heads of Agreement with the aim of finalising a definitive agreement within 6 months.

This isn't just another engineering job. It’s a landmark project to build a massive Sustainable Aviation Fuel (SAF) plant in Sabah.

This deal dwarfs Oiltek’s previous order book (RM350 million), transforming Oiltek into a high-tech "green fuel" powerhouse and positions it well for an upcoming secondary listing on Bursa Malaysia.

Metric	Oiltek International (SGX:HQU)	Koh Brothers Eco (SGX:5HV)
Current Share Price	$1.87	$0.095
Total Market Cap	$802.2 Million	$267.7 Million
Koh Eco's Stake	—	~68.14% (approx. 292.3M shares)
Market Value of Stake	—	$546.6 Million
Implied Value per Share	—	$0.194 (Value of Oiltek stake only)

HenryYong Oiltek4.25 Henry Yong, CEO of Oiltek.The market value of the Oiltek shares sitting in Koh Eco’s "vault" is worth $546 million, yet you can buy the entire parent company—including its own engineering and construction business operating in Singapore's multi-year construction boom —for just $268 million.

At 9.5 cents for Koh Eco, you are essentially buying $1.00 worth of Oiltek for about 50 cents.

Plus, you’re getting Koh Eco’s core business (which handles major government projects like the Tuas Water Reclamation Plant) for free.

Actually, it's better than free—you’re getting it at a "negative" price.

KohEco projects7.25 Koh Eco has a track record of delivering major projects.

Koh Brothers' shareholder proposal to be voted on at AGM

“To take all necessary steps to procure Koh Brothers Eco Engineering Limited ("KBE"), a 54.8%- owned subsidiary, to distribute in specie all of its 97,445,805 ordinary shares (or such number that exists following any corporate actions)... in Oiltek International to the shareholders of KBE, and for the Company, upon receipt of such shares, to similarly distribute the Oiltek shares to its own shareholders on a pro-rata basis.”

-- Koh Brothers Group filing on SGX

Investors usually avoid parent companies because the value is "trapped".

However, the game changed in late March 2026.

The shareholders of Koh Brothers Group are proposing a two-step process to get their hands on Oiltek shares:

Step 1: They want Koh Brothers Eco Engineering to give all 97.4 million of its Oiltek shares (strangely this figure is used as it is an old figure prior to a 2-for-1 bonus issue) to its own shareholders, which includes the parent company, Koh Brothers Group.

Step 2: Once Koh Brothers Group receives those Oiltek shares, it must pass them to its own shareholders.

If this proposal materialises, the 9.5-cent share price of Koh Eco could skyrocket toward its "true" value (the 18–20 cent range) as the shares are no longer "trapped".

BOTTOMLINE

Oiltek at $1.87 is a fantastic company at a lofty valuation (a P/E ratio now north of 75x).

You are betting that the Brunei project and the SAF boom will keep the momentum going for a long time.

Koh Eco at 9.5 cents is a value play. You are betting that the market cannot ignore a 50% discount forever.

The Bottom Line: While Oiltek has the glory and the big headlines, Koh Eco has the math.

Just be prepared for a bit of a wait while the corporate drama unfolds.

Is Koh Brothers Eco A Cheap Way to Own Hot Stock Oiltek?

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