Modest retail volume growth from RON95 price cut


PETALING JAYA: Petronas Dagangan Bhd (PetDag) is not expected to see a material shift in its earnings trajectory despite the recently announced changes in RON95 petrol pricing.  While the lower subsidised pump price may offer minor volume support, CIMB Research believes the impact on the fuel retailer’s bottom line will be neutral in the near to medium term.

The brokerage maintained a “hold” call on PetDag, with a discounted cash flow (DCF)-derived target price of RM20.90.

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PETRONAS Dagangan , RON95 , subsidy , petrol

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