Better prospects for Gas Malaysia on elevated natural gas prices

UOBKH Research said a key risk for the gas supplier in 2024 include the potential loss of retail market share.

PETALING JAYA: UOB Kay Hian (UOBKH) Research is positive on Gas Malaysia Bhd (GMB) despite maintaining its “hold” call on the company at a lower target price (TP) of RM3.07 a share.

The research firm expects the gas reticulator’s fourth quarter of 2023 and first half of this year financial performance to benefit from elevated natural gas (NG) prices, although it will be partly offset by lower NG volumes.