Broker: UOB Kay Hian
Date of Report: 6 April 2026

Excerpt from UOB Kay Hian report.

Report Summary

• Stock: MISC Berhad (MISC MK)
• Action: BUY (Maintained)
• Target Price: RM9.50 (raised from RM8.70)
• Share Price at Report: RM8.25
• Upside Potential: +15.2%
• Main Idea: The US-Iran conflict has triggered a surge in crude tanker demand and rates, benefiting MISC’s petroleum division. The company’s asset values and spot exposure position it as a key beneficiary in the crude tanker rally. However, there are rising risks relating to its LNG carrier (LNGC) business due to the Qatari LNG force majeure. If the force majeure extends, there could be contract renegotiations or terminations, but near-term earnings impact is limited.
• Key Highlights:
  • Crude tanker rates and asset values are at multi-cycle highs, with MISC’s petroleum fleet directly benefitting.
  • 25% of MISC’s petroleum fleet operates on spot, capturing upside from high rates.
  • LNGC segment faces downside risks if Qatari force majeure persists beyond four months, but current impact is limited as most vessels are on long-term charter.
  • MISC’s contract replenishment ability and positive outlook support MISC2030 cash flow targets (50% growth by 2030 from 2022) and dividend sustainability.
• Valuation & Recommendation:
  • BUY maintained, Target Price RM9.50 based on higher SOTP valuation (16x 2026F PE for petroleum, 25% DCF discount for LNG).
  • Major downside risk: Unexpected early termination of LNGC contracts, especially if Qatari force majeure is prolonged.

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