At a recent meeting with management, CGS-CIMB gathered that Gas Malaysia’s earnings will likely remain stable post incentive-based regulation (IBR) regulatory period 1. The current regulatory period is known as RP1, although the group implemented the IBR in 2016, in order to standardise with the regulatory period of Petronas Gas in 2020.
KUALA LUMPUR: CGS-CIMB Research expects Gas Malaysia Bhd
’s earnings to remain stable as the additional shipper margin could offset the lower regulated earnings in the regulatory period 1 (RP1).
The research house is maintaining its “add” call with an unchanged target price of RM3.11, based on 20.5 times CY20F P/E (one-year mean P/E).
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