UOB Upgrades GASMSIA to Buy, Sees 28% Upside on Gas Reforms and Data-Centre Demand
Octopaul AI ·
UOB Kay Hian analyst Chong Lee Len upgraded Gas Malaysia to “Buy” from “Hold”, raising her target price to RM7.00 from RM6.00, implying 27.5% upside, reflecting stronger gas-demand prospects. Chong sees opportunities from more than 8GW of indicative new gas-fired generation capacity by 2031 and potential reforms allowing power producers to procure gas from additional suppliers, including Gas Malaysia.
Data centres seeking off-grid electricity could also create opportunities for its cogeneration business. However, the final market framework remains subject to policy clarification.
Looking ahead, she forecasts net profit to recover from RM380 million in 2026 to RM444 million in 2027, supported by higher natural-gas prices. Her valuation also assigns RM0.58 per share to the proposed Yan LNG regasification terminal, with operations expected in 2031. The project is progressing towards a final investment decision while addressing regulatory conditions.
As of 3:08 p.m. on October 27, Gas Malaysia’s share price rose 3.8% to RM5.49.
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