Reservoir Link Energy (RLEB MK)
Growth via solar RE business
Ace Market

Reservoir Link is a niche player in upstream well services specialising in well perforation service. The pre-requisite to have an explosive licence provide some form of barrier to entry.
 Perforation service is cushioned from cyclical effect of O&G sector due to demand from low-capex production enhancement project as well as rising demand from decommissioning works.
 The company plans to grow its earnings by enhancing its offering in well testing and electric wireline services as well as venturing into solar RE business via acquisition of Founder Energy.
 We derive the fair value for RL at RM0.83/share premised primarily on its successful venture into solar RE business.