[%liSR%] 
Research by CGS
Hold – TP of MYR 3.70

“Buoyed by healthy gas prices” 

GMB's 1Q24 revenue increased by 4% qoq on the back of higher MRP (+5% qoq) during the quarter but negated slightly by lower sales volumes (-1% qoq) given decreased offtake by the industrial customers due to the fewer number of work days during the quarter as a result of the festivities, according to the company. As a result of the higher revenues and a lower effective tax rate, 1Q24 normalised net profit grew by 10% qoq, after excluding the reversal of gas cost accrual, which management guided amounted to RM9m. Yoy, normalised net profit was down 2% in 1Q24, largely in line with Bloomberg consensus fullyear expectation at 26% but ahead of ours at 31%. During the quarter, the group’s unregulated income stream made up 51% of earnings (60% in 1Q23) while its market share of industry volumes held steady at ~80%, flat from a year ago. In 1Q24, GMB completed the construction of 28km of pipelines (2023: 59km) and secured 8 new industrial customers on a net basis (2023: 21 customers)

Analyst(s):
Dharmini THURAISINGAM
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$KLSE-GASMSIA 
Research by CGS
Hold – TP of MYR 3.70

“Buoyed by healthy gas prices” 

GMB's 1Q24 revenue increased by 4% qoq on the back of higher MRP (+5% qoq) during the quarter but negated slightly by lower sales volumes (-1% qoq) given decreased offtake by the industrial customers due to the fewer number of work days during the quarter as a result of the festivities, according to the company. As a result of the higher revenues and a lower effective tax rate, 1Q24 normalised net profit grew by 10% qoq, after excluding the reversal of gas cost accrual, which management guided amounted to RM9m. Yoy, normalised net profit was down 2% in 1Q24, largely in line with Bloomberg consensus fullyear expectation at 26% but ahead of ours at 31%. During the quarter, the group’s unregulated income stream made up 51% of earnings (60% in 1Q23) while its market share of industry volumes held steady at ~80%, flat from a year ago. In 1Q24, GMB completed the construction of 28km of pipelines (2023: 59km) and secured 8 new industrial customers on a net basis (2023: 21 customers)

Analyst(s):
Dharmini THURAISINGAM
dharmini@cgsi.com