VELESTO Stock Forum

105221925Johnny04teo : According to the latest data as of April 22, 2025, **Velesto Energy Berhad (Stock Code: 5243)** has a share price of **0.155 Ringgit**, up 3.33% from the previous trading day, with a total market capitalization of approximately 1.273 billion Ringgit. The following is an analysis based on information from multiple sources.
Key Financial Indicators
1. Valuation and Earnings
PE (TTM): 5.17-6.20 (differences in calculation methods across platforms)
EPS (TTM): 0.025-0.03 Ringgit
PB: 0.50, indicating that the share price is below the net asset per share (NAPS 0.31 Ringgit).
Dividend Yield: Current dividend yield is approximately 3.23%-8.33%, with a dividend payout of 0.01 Ringgit per share in 2024, and plans to increase the payout ratio to 50% in 2025.
2. Financial Health
Debt situation: Long-term debt has been fully repaid, while short-term debt has dropped to 0.1779 billion Ringgit, cash and cash equivalents have reached 0.2475 billion Ringgit, and free cash flow stands at 0.3333 billion Ringgit.
Profitability: In 2024, net income is projected to be 0.2077 billion Ringgit, with year-on-year growth exceeding 100%, primarily due to the increase in average rates for drilling services (from 0.094 million to 0.118 million USD) and improved equipment utilization (87%).
Business and market dynamics
1. Core Business
  The company focuses on upstream Oil & Gas Services, including drilling, oilfield equipment maintenance, and pipeline services, covering the Malaysian and Southeast Asian markets. Currently, the primary drilling platforms (such as Naga 4 and Naga 6) have contracts extended until early 2026, supporting income stability.
2. Industry Outlook
 Oil price sensitivity: The company's profitability requires crude oil prices to be maintained above 50 USD per barrel. Current geopolitical factors (such as conflicts in the Middle East) and USA tariff policies may affect oil price fluctuations.
Regional expansion: Actively bidding for projects in Thailand, Vietnam, and Indonesia, seeking long-term contracts to secure revenue.
Investment Highlights and Risks
1. Highlights
 Low Valuation: The stock price is below the net assets, and the PE is significantly lower than the industry average.
 Dividend Potential: After clearing the debt, the company plans to increase the dividend payout ratio, with the dividend yield potentially increasing further by 2025.
Analyst Expectations: The average target price is 0.21 Ringgit, with a maximum of 0.34 Ringgit, representing a potential increase of 35%-119% compared to the current stock price.
2. Risks
 External Environment: Trump's tariff policy and changes in Federal Reserve interest rates may impact foreign capital flow and crude oil demand.
Industry Cycle: The Oil & Gas Services industry relies on capital expenditures; if oil prices fall below cost or if the global economy slows down, it may lead to a reduction in contracts.
Recent Stock Price Performance
Short-term fluctuations: Over the past month, the stock price has oscillated in the range of 0.13-0.17 Ringgit, with a trading volume of 1.8375 million shares on April 22, below the 20-day average (approximately 20.058 million shares).
Technical aspect: Daily Candlestick shows a recent Resistance of 0.15 Ringgit and a Resistance of 0.17 Ringgit; if the Resistance is broken, it may initiate an upward trend.
Investor Sentiment and Discussion
Optimistic viewpoint: Investors are focusing on the company's debt-free status, high cash flow, and management's commitment to increasing shareholder returns, with some expecting the stock price to rise to 0.25-0.28 Ringgit.
Summary recommendations.
Velesto 5243 currently possesses undervalue, high dividend potential, and business stability, suitable for medium to long-term value investors. In the short term, close attention must be paid to Crude Oil Product price trends and policy risks. If risk tolerance is low, consider building positions in batches and setting stop-loss levels (e.g., 0.13 Ringgit).

104846489 : why？

104993262 : why

105221925Johnny04teo : Large buyers have all entered the market, yet this Stocks still cannot rise like a defeated warrior, truly embarrassing.

105221925Johnny04teo : As soon as the large seller dumped 1,500K, a bunch of followers immediately came in. Fortunately, this stock has good momentum and did not push the price down. The reason is likely waiting for next week's dividend! Good job.

104575152 : If it weren't for the dividend on the 24th, I would sell immediately.

BRIAN_87 OP 104575152 : It's just 0.01, how many lots do you have?

104575152 BRIAN_87 OP : Typically, many people would Buy a few days before the dividend is distributed, but it seems there is no activity here.

105221925Johnny04teo : It is all caused by the tariff arrangement made by the Americans.

102596641 : opec increase production，why will gg leh？they are not the one who selling oil also

104785376 102596641 : Increasing is a good thing. Oh my God it's chaotic.

105221925Johnny04teo : It's not chaotic; it's the foreign capital trying to drive the prices down for a major acquisition, earning a profit from the price difference and dividends.

closing acc : Everything has been frozen.

74725135 : manipulation, manipulation, manipulering

104785376 74725135 : Clear, understood, and thorough.

Izzat Rafie : it's a long term setup for velesto

Asdee Izzat Rafie : agree

105546927 : so if setup for long term. that investment can upp

孤独的羊 : The problem is that someone is controlling the price, which only fluctuates between 0.155 and 0.165.

102596641 : collecting ticket….