Latest news with #GasMalaysiaBerhad
New Straits Times
22-05-2025
- Business
- New Straits Times
Gas Malaysia launches Malaysia's first centralised biomethane injection station
Previous Next KUALA LUMPUR: Gas Malaysia Berhad has launched Malaysia's first centralised biomethane injection station in a landmark effort to drive the growth of renewable energy. The facility, developed through its wholly owned subsidiary Gas Malaysia Green Ventures Sdn Bhd (GMGV), is expected to begin operations in the second half of 2025. Chairman Tan Sri Wan Zulkiflee Wan Ariffin said the milestone reflects the company's strong commitment to supporting the national green energy agenda, with a focus on reducing carbon emissions and facilitating the transition to cleaner energy across multiple industries. He added that biomethane initiatives will remain a strategic pillar in the company's pursuit of sustainable energy solutions and long-term growth. "We are grateful for the government's support in progressing the sustainability agenda. "Our 10-year strategic plan, known as the GM32 Strategy, has been developed to strengthen our core business, explore new opportunities along the gas value chain, and diversify into cleaner energy solutions. "Today's event marks a significant milestone in our journey to realise the aspirations outlined in the GM32 Strategy," he said at the launch of the station here on Tuesday. The ceremony was officiated by the Minister of Plantation and Commodities, Datuk Seri Johari Abdul Ghani. Also present was Gas Malaysia group president and chief executive officer Ahmad Hashimi Abdul Manap. Wan Zulkiflee said that this initiative aligns with key national policies such as the National Energy Policy 2022–2040 (NEP) and the National Energy Transition Roadmap (NETR). "These frameworks reflect Malaysia's ambition to transition towards a low-carbon economy and a more inclusive and sustainable energy ecosystem. "This effort also supports the National Biomass Action Plan 2023–2030 by converting palm oil waste into high-value renewable gas, thereby contributing to the circular economy and enhancing the value chain of the plantation sector," he said. In addition, he said this venture is expected to yield promising outcomes, including the provision of internationally certified green gas under the International Sustainability and Carbon Certification (ISCC), helping industrial clients meet their sustainability targets. "It is also anticipated to create value for renewable gas producers by collaborating with Gas Malaysia, thereby improving the viability and profitability of biomethane projects," he added. The station has been officially recognised by the Malaysian Book of Records (MBOR) as Malaysia's first Centralised Biomethane Injection Station. Strategically located to receive biomethane supply from surrounding palm oil mills, the station offers a centralised solution for injecting biomethane into the natural gas network.
Yahoo
12-03-2025
- Business
- Yahoo
A Look At The Intrinsic Value Of Gas Malaysia Berhad (KLSE:GASMSIA)
Gas Malaysia Berhad's estimated fair value is RM4.96 based on 2 Stage Free Cash Flow to Equity Current share price of RM4.10 suggests Gas Malaysia Berhad is potentially trading close to its fair value The RM4.34 analyst price target for GASMSIA is 13% less than our estimate of fair value Today we will run through one way of estimating the intrinsic value of Gas Malaysia Berhad (KLSE:GASMSIA) by taking the expected future cash flows and discounting them to today's value. The Discounted Cash Flow (DCF) model is the tool we will apply to do this. Don't get put off by the jargon, the math behind it is actually quite straightforward. We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. If you still have some burning questions about this type of valuation, take a look at the Simply Wall St analysis model. Check out our latest analysis for Gas Malaysia Berhad We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (MYR, Millions) RM293.7m RM309.4m RM324.4m RM310.0m RM351.0m RM363.2m RM375.9m RM389.2m RM403.0m RM417.4m Growth Rate Estimate Source Analyst x3 Analyst x4 Analyst x3 Analyst x1 Analyst x1 Est @ 3.46% Est @ 3.51% Est @ 3.53% Est @ 3.55% Est @ 3.57% Present Value (MYR, Millions) Discounted @ 8.3% RM271 RM264 RM255 RM225 RM235 RM225 RM215 RM205 RM196 RM187 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = RM2.3b We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (3.6%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 8.3%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = RM417m× (1 + 3.6%) ÷ (8.3%– 3.6%) = RM9.1b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= RM9.1b÷ ( 1 + 8.3%)10= RM4.1b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is RM6.4b. To get the intrinsic value per share, we divide this by the total number of shares outstanding. Compared to the current share price of RM4.1, the company appears about fair value at a 17% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent. Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Gas Malaysia Berhad as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 8.3%, which is based on a levered beta of 0.800. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Strength Earnings growth over the past year exceeded the industry. Debt is not viewed as a risk. Dividends are covered by earnings and cash flows. Weakness Earnings growth over the past year is below its 5-year average. Dividend is low compared to the top 25% of dividend payers in the Gas Utilities market. Opportunity Good value based on P/E ratio and estimated fair value. Threat Annual earnings are forecast to decline for the next 3 years. Whilst important, the DCF calculation shouldn't be the only metric you look at when researching a company. It's not possible to obtain a foolproof valuation with a DCF model. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. For Gas Malaysia Berhad, there are three fundamental elements you should explore: Risks: You should be aware of the 2 warning signs for Gas Malaysia Berhad (1 is a bit unpleasant!) we've uncovered before considering an investment in the company. Future Earnings: How does GASMSIA's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered! PS. Simply Wall St updates its DCF calculation for every Malaysian stock every day, so if you want to find the intrinsic value of any other stock just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
19-02-2025
- Business
- Yahoo
Gas Malaysia Berhad Full Year 2024 Earnings: EPS: RM0.34 (vs RM0.30 in FY 2023)
Revenue: RM8.04b (flat on FY 2023). Net income: RM441.4m (up 15% from FY 2023). Profit margin: 5.5% (up from 4.7% in FY 2023). EPS: RM0.34 (up from RM0.30 in FY 2023). All figures shown in the chart above are for the trailing 12 month (TTM) period Looking ahead, revenue is forecast to grow 3.3% p.a. on average during the next 3 years, compared to a 3.0% growth forecast for the Gas Utilities industry in Asia. Performance of the market in Malaysia. The company's share price is broadly unchanged from a week ago. Be aware that Gas Malaysia Berhad is showing 2 warning signs in our investment analysis and 1 of those is potentially serious... Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
