Gas Malaysia Berhad

$GASMSIA / 5209 (GAS MALAYSIA BERHAD)
Research Report by MAYBANK

$GASMSIA / 5209 (GAS MALAYSIA BERHAD)
Research Report by CGSI

$GASMSIA / 5209 (GAS MALAYSIA BERHAD)
Research by MIDF
Buy - TP RM3.96

"Strong Sectoral Demand Supports 1HFY24 Earnings"

• 1HFY24 revenue down -14%yoy; earnings up +11%yoy and came within expectation
• Lower revenue from lower ASP, higher earnings from higher volume, tolling fee
• Demand growth from industrials, plantation and consumer sectors expected in near term
• Maintain BUY with target price of RM3.96

Analyst:
MIDF Research
research@midf.com.my

$GASMSIA / 5209 (GAS MALAYSIA BERHAD)
Research by Maybank
Hold - TP RM3.60

"Possibly the peak for FY24"

2Q24 results were in line with our/consensus expectations, as gas prices peaked in the quarter. We expect a weaker 2H24 based on current gas price trends. Nevertheless, GMB’s >6% dividend yield should provide some degree of downside support, in our view. Maintain HOLD with an unchanged DCF-based TP of MYR3.60. On a relative basis, GMB remains our preferred pick among the gas utilities.

Analyst:
Tan Chi Wei, CFA
chiwei.t@maybank-ib.com

$GASMSIA / 5209 (GAS MALAYSIA BERHAD)
Research by Kenanga
Market Perform - TP RM3.61

"Improved Margin Led 1HFY24 Growth"

GASMSIA’s 1HFY24 results topped forecasts due to higher-than-expected margin spread which was partly due to better ASP that pushed retail margin higher. Having said that, we keep our sales growth assumption (+4%/+3% in FY24/FY25) while margin spread is set to reduce for client’s contract extension due this year-end. We raise FY24F earnings by 8% and TP to RM3.61 (from RM3.59). It remains a MARKET PERFORM for its attractive dividend yield of >6%.

Analyst:
Teh Kian Yeong
tehky@kenanga.com.my

$GASMSIA / 5209 (GAS MALAYSIA BERHAD)
Research by CGS
Hold - TP RM3.70

"A record quarter"

■ GMB’s earnings hit a new record in 2Q24, with normalised net profit coming in at RM110m, helped mainly by notably lower overheads during the quarter.
■ 1H24 core net profit was slightly ahead of expectations at 54-55% of our and Bloomberg consensus full-year forecasts.
■ Maintain Hold and RM3.20 TP. The stock offers FY24-26F yields of ~5.5- 6.5%, backed by a strong net cash balance sheet and healthy FCFs.

Analyst:
Dharmini THURAISINGAM
E dharmini@cgsi.com

$GASMSIA / 5209 (GAS MALAYSIA BERHAD)
Research by Kenanga
Market Perform – TP RM3.59

“A Strong 2QFY24 Expected"

We expect GASMSIA to post another strong set of quarterly results in 2QFY24 with a net profit of c.RM100m-RM105m (vs. 1QFY24A: RM102.3m) on the back of higher gas selling prices albeit a flattish sales volume. This will be in-line with expectations. We keep our forecasts, TP of RM3.59 and MARKET PERFORM call. The stock is supported by an above average dividend yield of >6%.

Analyst:
Teh Kian Yeong
tehky@kenanga.com.my

$BURSA / 1818 (BURSA MALAYSIA BERHAD) $MAYBANK / 1155 (MALAYAN BANKING BERHAD) $GASMSIA / 5209 (GAS MALAYSIA BERHAD) $YINSON / 7293 (YINSON HOLDINGS BERHAD) $CIMB / 1023 (CIMB GROUP HOLDINGS BERHAD)

$GASMSIA / 5209 (GAS MALAYSIA BERHAD)
Research by Kenanga
Market Perform – TP RM3.59

“Feeling Heat from CHP Plants, Literally"

We visited and learned first-hand about GASMSIA’s combined heat and power (CHP) plants in Prai last week. Despite their immaterial contributions to group earnings, these CHP plants provide a boost to GASMSIA’s ESG profile given their role in reducing carbon dioxide emission. We maintain our forecasts, TP of RM3.59 and our MARKET PERFORM rating.

Analyst:
Teh Kian Yeong
tehky@kenanga.com.my

$GASMSIA / 5209 (GAS MALAYSIA BERHAD)
Research by MIDF
Buy – TP RM3.96

“Taking the lead in Malaysia's CHP business"

We make no changes to our forecast projection for GMB as we had factored in the CHP plants in our valuation. Pending major changes in the Brent crude oil price in the near-term which could impact gas uptakes, we maintain our BUY call with a target price of RM3.96.

Analyst:
MIDF Research
research@midf.com.my

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

KUALA LUMPUR: Gas Malaysia Bhd could see sustained or higher dividend payouts in the near term, especially if its strong cash flow continues.

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

Change in Boardroom - MR NOBUHISA KOBAYASHI

Change in Boardroom - MR ATSUNORI TAKEUCHI

General Meetings: Outcome of Meeting

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD

$GASMSIA / 5209 (GAS MALAYSIA BERHAD)
Research by Kenanga
Market Perform – TP of MYR 3.59

"Buoyed by Demand from Glove Sector”

GASMSIA guided for gas sales volume growth of 4% to 5% in FY24, driven largely by strong demand from the rubber glove, consumer product and F&B sectors. We fine-tune up our FY24- 25F net profit forecasts by 1% each, tweak our TP up to RM3.59 (from RM3.55) but maintain our MARKET PERFORM call. The stock offers an attractive yield of >6%.

Analyst(s):
Teh Kian Yeong
tehky@kenanga.com.my

$GASMSIA / 5209 (GAS MALAYSIA BERHAD)
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

$GASMSIA / 5209 (GAS MALAYSIA BERHAD)
Research by MIDF
Buy – TP of MYR 3.96

“Stable ASP In Line with Expected Stable Brent Oil Price”

GMB announced that the construction of 28km of pipelines were completed in 1QCY24, which included: (i) Tg Malim, Perak (16.2km), (ii) Tebong, Melaka (2.4km), (iii) Simpang Ampat, Penang (1.4km) and Kinta Valley, Perak (1.4km). As of 1QCY24, 160km of pipeline project is expected to be rewarded. Total pipeline YTD stood at 2,831 (CY23: 2,803).

Analyst(s):
MIDF Research Team
research@midf.com.my

$GASMSIA / 5209 (GAS MALAYSIA BERHAD)
Research by Kenanga
Market Perform – TP RM3.55

“A Strong Start to FY24"

GASMSIA’s 1QFY24 results beat our forecast (due to a higher sales volume and a better gas reference price) but only met market expectations. Its 1QFY24 core net profit rose 8% YoY driven largely by a higher sales volume. We raise our FY24-25F net profit forecasts by 9% and 12%, respectively, lift our TP by 7% to RM3.55 (from RM3.33) but maintain our MARKET PERFORM call. The stock offers an attractive dividend yield of >6%.

Analyst:
Teh Kian Yeong
tehky@kenanga.com.my