Broker Name: Maybank Investment Bank Berhad
Date of Report: November 25, 2025
Excerpt from Maybank Investment Bank Berhad report.
- Report Summary:
- MISC Bhd’s 3Q25 results were in line with expectations, maintaining a defensive profile thanks to long-term charters and recurring cash flows. The declared 3rd interim dividend per share (DPS) of 8.0 sen supports an annual DPS forecast of 36 sen, offering a yield of over 4%.
- LNG shipping spot rates are expected to remain soft in 4Q25 due to vessel oversupply and subdued demand, but a recovery in rates is anticipated in 2026 as new liquefaction projects come online.
- The petroleum tanker market is expected to stay stable, backed by increased OPEC+ output and steady demand along US-Asia trade routes.
- MISC’s diversified segments (LNG, petroleum, FPSO/FSO) and high term:spot ratios (LNG 95:5, petroleum 75:25) provide stable earnings and support its dividend payout policy.
- The share price target remains at MYR8.22 with a HOLD rating due to limited upside, referencing a Sum-of-Parts valuation and stable financial metrics.
- Key risks include unplanned asset shutdowns and cost overruns on newbuild projects.
- MISC continues to pursue growth in energy transition sectors such as ammonia and low-carbon shipping solutions, aligned with PETRONAS’s backing.
Above is an excerpt from a report by Maybank Investment Bank Berhad. Clients of Maybank Investment Bank Berhad can be the first to access the full report from the Maybank Investment Bank Berhad website: https://www.maybank.com/investment-banking
