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Research by CGS
Reduce - TP RM16.78

"Risk from RON95 subsidy rationalisation"

■ 1H24 core net profit of RM518m was 51% of our full-year forecast, broadly in line with expectations since 2H24F could be slightly weaker.
■ This is due to the diesel subsidy rationalisation (effective 10 Jun 2024), and potential RON95 mogas subsidy rationalisation in 2H24F.
■ Reiterate Reduce with unchanged DDM-based TP of RM16.78; PDB makes a bigger gross profit selling RON95 than for diesel, according to the APM.

Analyst:
Raymond YAP, CFA
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$KLSE-PETDAG
Research by CGS
Reduce - TP RM16.78

"Risk from RON95 subsidy rationalisation"

■ 1H24 core net profit of RM518m was 51% of our full-year forecast, broadly in line with expectations since 2H24F could be slightly weaker.
■ This is due to the diesel subsidy rationalisation (effective 10 Jun 2024), and potential RON95 mogas subsidy rationalisation in 2H24F.
■ Reiterate Reduce with unchanged DDM-based TP of RM16.78; PDB makes a bigger gross profit selling RON95 than for diesel, according to the APM.

Analyst:
Raymond YAP, CFA
raymond.yap@cgsi.com