Higher Natural Gas rates benefits Gas Malaysia

The government seems poised to list more companies that will benefit from subsidy rationalization.  Gas Malaysia, a recently listed company looks to capitalize as gas prices rise.  From my understanding, the company doesn't carry any inventory and is just the mode of transportation for the gas.

This is good as they do not bear any commodity risk on the balance sheet.  They also have a monopoly which is another plus factor to this stock.

For me, the market is in an uptrend still with the trend line at RM 3.40 not yet broken convincingly.  Of course my favourite area to buy this stock would be near RM 2.50 area.  But that is wishful thinking.

Apparently the subsidy rationalization for natural gas has underperformed the Government's promises.  The market was expecting stronger hikes, and that has disappointed investors.  Nevertheless, the company has a clear path for revenue growth through government rate hikes.  That can't be said for a lot of other companies slugging it out in the business world.