RHB Research has initiated coverage on Gas Malaysia Bhd with a "Buy" recommendation and a target price of RM6.50.
The brokerage highlighted the company's positioning as a primary beneficiary of rising natural gas prices and the ongoing development of its regasification terminal infrastructure.
The initiation signals growing analyst interest in Malaysian energy utilities as commodity prices support margin expansion.
Gas Malaysia's business model, which includes the import, storage, and distribution of liquefied natural gas (LNG), is directly leveraged to global gas market dynamics.
The RM6.50 target price implies significant upside from current levels, reflecting RHB's confidence in the company's ability to capitalize on the current pricing environment.
The regasification terminal development is a critical component of the thesis, as it enhances the company's capacity to meet domestic demand and potentially expand its market share in the regional energy supply chain.