RHB Initiates Gas Malaysia with Buy Call, Targets RM6.50

RHB Research has initiated coverage on Gas Malaysia Bhd, giving it a 'Buy' call and a target price of RM6.50.

The research house cited higher gas prices and the development of the regasification terminal four (RGT4) project as key drivers for its recommendation.

Gas Malaysia stands to benefit from higher crude oil prices, with its shipper division earning a fixed margin based on the Malaysia Reference Price (MRP).

RHB Research forecasts MRP to increase 26 per cent year-on-year (YoY) in Q4 given the nine-month lag to Brent oil price movement, and expects a stronger impact in 2027, with MRP forecasted to increase 28 per cent YoY.