PETALING JAYA: Despite the challenging environment in which MISC Bhd
operates, analysts are optimistic about the group’s medium-term outlook.
This is supported by the company’s long-term charter contracts and ongoing fleet modernisation, said RHB Research in a report.
The group’s growth prospects were also supported by its positioning in the floating production storage and offloading supercycle and growing momentum in green energy, it added.
MISC expected minimal impact from trade headwinds, with its liquefied natural gas and petroleum fleets largely backed by long-term charters.
Its exposure to China-built vessels in the US Gulf is minimal, with flexibility to redeploy if required.
In managing geopolitical risks, the research house said MISC had rerouted vessels via the Cape of Good Hope, supported by real-time monitoring and close coordination with authorities.
While oil majors pivot back to traditional oil and gas, highlighting energy transition risks, the maritime sector continues to move forward under clear regulatory direction and mounting pressure to decarbonise.
To support this, MISC has established a dedicated task force to navigate its decarbonisation journey, the research house said.
RHB Research and BIMB Securities Research retained “buy” calls on the stock, while Kenanga Research has an “outperform” stance.
RHB Research has set a target price at RM9.70 for the stock, while BIMB Securities Research at RM9.90 and Kenanga Research at RM8.17 a share.
MISC’s balance sheet is solid while cash flow is expected to trend at or above RM1bil which will be key in supporting dividend payouts.
