KUALA LUMPUR (Feb 25): Gas Malaysia Bhd's (KL:GASMSIA) shares fell to a one-month low on Wednesday before rebounding after its recent quarterly results missed expectations.
The counter shed as much as 29 sen, or over 6%, to RM4.46 in the morning trading session. The stock began rebounding in the afternoon session and ended the day at RM4.77, slightly higher than the previous day’s close. At the last price, the company’s market capitalisation is about RM6 billion.
In a note on Wednesday, Maybank Investment Bank said Gas Malaysia’s net profit of RM87 million for the fourth quarter ended Dec 31, 2025 (4QFY2025) brings its FY2025 net profit to RM382 million, which is 8% below its estimate and 6% below consensus forecasts.
"The miss relative to our forecasts was likely due to lower-than-expected spreads in 4QFY2025 (possibly from some retrospective adjustments of gas costs)," the house said.
Maybank IB said while a 8.5 sen interim dividend per share (DPS) was declared, a final DPS of up to eight sen, based on a 75% payout, would likely be announced upon release of audited accounts.
The research firm said domestic gas prices are trending lower in FY2026, implying lower retail profits.
"This is partly offset by potentially higher distribution profits (recall that the tariff has been raised in Regulatory Period 3, 2026-2028; the management has yet to clarify the impact). "
As such, Maybank IB lowered its net profit forecasts by 7% for FY2026 and 8% for FY2027.
It maintained its 'hold' call but lowered its target price to RM3.90 (from RM4).
"Despite a lack of earnings growth in the near term, Gas Malaysia's 5% dividend yield and expectations of further industry liberalisation should provide some downside support in our view," said the house.
According to AskEdge data, Gas Malaysia is trading at 15 times trailing price-earnings ratio and 4.1 times price-to-book ratio, the highest among peers.