CIMB Research maintains Add on Gas Malaysia, trims target price to RM3.95

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KUALA LUMPUR (Oct 30): CIMB Research has maintained its Add rating on Gas Malaysia Bhd at RM3.52 with a revised target price of RM3.95 (from RM3.96) and said despite the small quantum, Gas Malaysia's revision of the non-power gas tariff was positive as it implied that the government was sticking to its 6-month gas price revision plan.

In a note Thursday, the research house said the new gas tariff would take effect by the beginning of November while we anticipate another revision by Apr/May 2015.

“We maintain our Add call on Gas Malaysia, with a revised target price of RM3.95, still based on 24x FY15 P/E, after trimming FY14-16 EPS by 0.2-0.4% per annum given the new selling prices,” it said.

At 9.48am, Gas Malaysia was f;at at RM3.52 with 100 shares done.