The usage of gas wil not be as good as expected in economic recession! Msia Gov will not allow the gas price to sell at higher rate to increase the RAKYAT burden especially GE15 is around in corner!
Gearing ratios are a group of financial metrics that compare shareholders' equity to company debt in various ways to assess the company's amount of leverage and financial stability.
Gearing is a measure of how much of a company's operations are funded using debt versus the funding received from shareholders as equity.
A higher gearing ratio indicates that a company has a higher degree of financial leverage and is more susceptible to downturns in the economy and the business cycle. This is because companies that have higher leverage have higher amounts of debt compared to shareholders' equity. Entities with a high gearing ratio have higher amounts of debt to service, while companies with lower gearing ratio calculations have more equity to rely on for financing.
Gas Malaysia has a gearing ratio of 2.5! This is unhealthy based on fundamental investment strategy! High gearing ratio is bad especially during global recession as company has to service the loan more comparatively to those low gearing ratio ones.
Cash per share of Gas Malaysia dropped significantly from 0.46 to 0.03! This is extremely bad especially in the midst of global economic recession! In other words, Gas Malaysia is not a net cash company, but a debt laden company! Only fools will buy at such price and hope another dumbest one will buy from them later on at higher price!
Gas Malaysia is a poor cash flow company with huge debt (high gearing ratio of 2.5!), profits depending on government mercy to increase selling gas price, otherwise, gas Malaysia has to swallow the pain of high raw material (gas price)! Short9e!
Gas Malaysia, is a small + debt laden gas player in the market, whereby the market shares can easily be monopolized by Petronas Gas! Buying gas Malaysia is no different from fighting against the Gas Titan of the market, Petronas Gas! Do the maths, you know, better option to invest is Petronas Gas, not Gas Malaysia!
Petronas Gas business more toward export market, Petrochemical Plant, Large Industries, TNB, SESB , Domestic IPP, Export to Senoko/Keppel & supply to Gas Malaysia ( for domestic distribution).
Gas Malaysia are owned by PetGas about 14.8%. Japanese Tokyo Gas owned 18.5% The largest single owner of Gas Malaysia is Anglo Oriental - annuities Sdn Bhd ( should be TS Syed Mokthar vehicles)
PetGas & GasM business segment is totally different & they didn't compete between themselves. It is a fallacy statement to state PetGas is fighting with GasM.
Also, the domestic gas distribution is only 0.003% of the GMas revenue. If if government regulated the domestic gas price, it will not impact GMas revenue. GMas real customer base are actually the local industries which accounted for 99.67% of their revenue ( almost monopoly ).
Read both Petronas Gas & GasM AR to get the facts correct.
D/E ratio varies from industry to industry. It is very norm for the utilities counter have high Debt to Equity ratio because utilities company need high capital intensive investment, a lot of their debts are actually in the long term secured bonds.
Please get the fact on D/E ratio understanding correct also. Talk everyone can simply hantam.
Soon the majority will be mindful in using the gas (jimat cermat) to reduce unnecessary expenses in the post Covid economic crisis. Gas will not do well!
lol...you know how much is the domestic gas distributed by GasM? 0.003%, not even close to 0.1% of their revenue. Jimat cermat will impact 0.003%? Longkang level logic.
Even government cap domestic gas price, 0.003% , niamah, that is almost negligibble.
The real GasM revenue are coming from industrial, industrial gas rate, government not going to subsidize or cap the price.
Short gas Malaysia and ringgit! Short9e! You all, Malaysian, are the big losers in the post Covid economic crisis! Your government making you all poorer by allowing ringgit to be shorted! Tun M is smart, peg ringgit, unfortunately, he is not the PM. Serve you all right! Poorer rakyat Malaysia!
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
apple168
6,236 posts
Posted by apple168 > 2022-05-20 15:42 | Report Abuse
Each of us received 8000+ lots of Gas Malaysia to short9e!