Broker Name: UOB Kay Hian
Date of Report: 10 June 2026

Excerpt from UOB Kay Hian report.

Report Summary

• Sector Call: Maintain MARKET WEIGHT on Malaysia Oil & Gas sector. Sector valuations remain depressed due to ongoing constitutional risks and Petronas-Petros dispute.
• Top Picks & Actionable Calls:
  • MISC (MISC MK) — BUY | Target Price: RM9.50. Strong near-term catalysts from crude tanker exposure. Long-term outlook supported by increasing capex and vessel deliveries.
  • Dialog Group (DLG MK) — BUY | Target Price: RM2.95. Positioned as the new “upstream champion” with anticipated upside from new production volumes. Premium valuation justified if early startup targets are achieved.
  • Uzma (UZMA MK) — BUY | Target Price: RM0.76.
  • Deleum (DLUM MK) — BUY | Target Price: RM1.75.
  • Petronas Dagangan (PETD MK) — BUY | Target Price: RM23.20.
  • MMHE (MMHE MK) — BUY | Target Price: RM0.50.
  • Yinson Holdings (YNS MK) — BUY | Target Price: RM2.75.
• Key Ideas & Highlights:
  • Oil price forecasts have established a reasonable floor (>US\$100/bbl in 2H26), but this does not benefit most Malaysian O&G players directly.
  • Petronas is expediting new projects to maintain 2m boepd domestic production, with cross-border JVs and technology investments ongoing.
  • Sector sentiment remains tied to local geopolitical uncertainties (Petronas-Petros fallout, Sarawak/Sabah autonomy issues).
  • Sabah is pushing for higher OGSE contract ownership (60%) and Sabahan employment rate (80%).
  • The Federal Court’s resolution on the Petronas-Petros dispute is a key event that may lift sector valuations.

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