Gas Malaysia Berhad - A child is born

Date: 
2012-06-25
Firm: 
CIMB
Stock: 
GASMSIA
Price Target: 
2.84
Price Call: 
BUY
Last Price: 
3.57
Upside/Downside: 
-0.73 (20.45%)
Target RM2.84 (Long Term: Out Perform)

Gas Malaysia boasts a monopoly of natural gas supply to Peninsular Malaysia's small and medium users. It is tapping into additional gas supply from new regas terminals (RGT), including the recently secured 29% increase in gas supply from Petronas beginning next year. Our DDM-based target price is based on a 6% cap rate and 2% terminal growth rate (TGR). We initiate coverage with an Outperform rating. Announcement of more RGT projects in Johor and Kerteh plus clarity on Malaysia's LNG pricing mechanism will catalyse the stock.

Discussions
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Matjadi Jadi

hmm..gud

2012-06-26 16:06

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