MISC Bhd remains a BUY for RHB Investment Bank Bhd (RHB Research) with a target price of RM9.71, while MBSB Investment Bank Bhd (MBSB Research) also maintained its BUY call but with a lower target price of RM9.22, after the shipping group secured a 10-year charter for a new LNG carrier serving Japan.
RHB Research said MISC had secured a letter of award from Malaysia LNG Sdn Bhd for the long-term time charter of an 18,700-cubic metre LNG carrier, with operations expected to begin in 2028. The vessel will transport LNG from PETRONAS’ Bintulu complex to Sendai City, Japan and is expected to support MISC’s fleet rejuvenation.
MBSB Research said the contract provides long-term earnings visibility as Malaysia LNG will bear variable voyage costs including bunkering, canal dues and port fees, leaving MISC largely insulated from fuel price volatility and route delays.
The analysts also said the smaller vessel could serve specialised routes with shallower drafts, smaller berths or lower storage capacity, while replacing older and less efficient LNG carriers would support MISC’s ESG commitments.
RHB Research expects MISC’s Gas Assets & Solutions segment to become broadly comparable with its Petroleum business over the medium term, supported by 19 vessel additions and seven fully-owned LNG carrier deliveries between 2026 and 2028.
MBSB Research estimated the new vessel could generate RM36 million to RM47 million in annual revenue and RM7 million to RM12 million in annual net profit, although the earnings contribution would remain modest at around 0.5% to 1% of MISC’s annual earnings.
