Petronas Gas Bhd (PGB) remained a HOLD for both HLIB and CIMB Securities, with HLIB keeping its RM17.83 target price and CIMB trimming its target to RM18.50 from RM18.70. HLIB said 1HFY26 earnings were within expectations while CIMB noted the results came in line with 51% of its FY26 forecast.
PGB’s 1HFY26 core profit after tax and minority interest stood at RM894.9 million, down 2.5% year-on-year, according to HLIB, as weaker Gas Processing and Utilities contributions offset stronger performance from Gas Transportation and Regasification.
The Utilities segment was affected by lower sales volumes following planned regulatory turnaround activities, while Gas Processing was weighed down by higher depreciation costs following the completion of several capital projects. These pressures were partly cushioned by higher tariffs under Regulatory Period 3, which lifted Gas Transportation and Regasification earnings.
CIMB said second-quarter core earnings per share rose 1.5% year-on-year, driven by stronger Gas Transportation and Regasification earnings. The research house expects third-quarter earnings to improve year-on-year, supported by these two segments, while Utilities could provide additional support if earnings recover quarter-on-quarter.
PGB declared a second interim dividend of 16 sen per share, bringing its first-half dividend to 32 sen. HLIB expects the group to maintain its annual dividend payout at 72 sen per share, supported by healthy free cash flow.
Looking ahead, HLIB expects new gas power plants and the Lumut Regasification Plant to support growth, although analysts continue to see limited near-term upside for the stock.
As of 12.06 am, the stock price gained 0.46% to RM17.66.
