RHB Research Sees 30% Upside in Gas Malaysia as Crude Oil Prices Climb

RHB Research is bullish on Gas Malaysia Bhd (KL:GASMSIA), expecting nearly 30% upside from its current price.

The research house initiated coverage with a 'buy' call and a sum-of-parts-based target price of RM6.50, implying more than 25% upside to the current RM5.19 price.

RHB believes Gas Malaysia benefits from higher gas prices, as its shipper division earns a fixed margin on Malaysia Reference Price (MRP), which tracks Brent crude oil.

The research house forecasts MRP to increase 26% year-on-year in 4Q given the nine-month lag to Brent oil price movement, and expects a stronger impact in 2027 with a 28% year-on-year increase.