KUALA LUMPUR: Rakuten Trade Sdn Bhd has initiated coverage on United Asiapac Energy Bhd with a "Buy" call and a fair value of 50 sen, implying a 42 per cent upside from its 35 sen initial public offering (IPO) price ahead of its ACE Market listing.

The firm's valuation is based on a 15-time price-earnings multiple applied to United Asiapac's forecast earnings per share for the financial year ending 2027.

This reflects confidence in the oil and gas service company's growth prospects and earnings trajectory.

Rakuten Trade vice-president of equity research Thong Pak Leng said the valuation is based on a 15 times price-earnings ratio applied to United Asiapac's financial year 2027 (FY27) forecast earnings per share.

This is supported by the company's expansion plans, expected margin improvement and strong track record with Petroliam Nasional Bhd (Petronas).

"Majority of the IPO proceeds are intended to support business expansion, hence, we expect United Asiapac to register core profit after tax and minority interests of RM13.5 million and RM18.2 million for FY26 and FY27," Thong said.

He said United Asiapac is licenced by both Petronas and Petroleum Sarawak Bhd (Petros), allowing the company to undertake projects across Peninsular Malaysia, Sabah and Sarawak.

As at Feb 28, 2026, the company had secured about RM61.1 million in purchase orders, with RM27.3 million yet to be recognised and expected to be delivered by February 2027, providing near-term revenue visibility.

The firm said United Asiapac aims to grow its revenue by securing more contracts from existing and new upstream operators, supported by its expanded equipment fleet, experienced technical workforce and comprehensive Petronas and Petros licences.

It added that greater equipment ownership would enhance service responsiveness and reduce turnaround times, strengthening the company's competitive position while supporting higher margins.