CIMB Research lowers target price for Gas Malaysia to RM3.11

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KUALA LUMPUR (March 20):  CIMB IB Research has maintained its “Add” rating on Gas Malaysia Bhd (GMB) at RM2.88 with a lower target price of RM3.11 (from RM3.12) and said a recent meeting with management, it gathered that Gas Malaysia’s earnings will likely remain stable post TPA and RP2.

In a note March 19, the research said GMB aims to at least maintain its FY19 DPS at a level similar to FY18, which translates into a decent dividend yield of circa 5%.

“Maintain Add with a revised target price of RM3.11, still based on 20.5x FY20F P/E,” it said.