At 10.40am, the gas infrastructure and utilities group’s share price declined by 16 sen to RM17.34, with 19,100 shares traded.

Yesterday, PGB reported that its net profit for FY2022 slipped to RM1.65 billion from RM1.99 billion recorded in FY2021.

Nonetheless, most research firms are optimistic about PGB, given the group’s positive prospects and the expectation of a more stable gas market going forward.

MIDF Research has upgraded its call on PGB’s shares to “buy” and raised the target price (TP) to RM18.43 from RM17.27 previously as the gas market is expected to gradually minimise its volatility amid the recovery in China’s economy after the country eased its strict Covid-19 restrictions.

However, it noted that inflationary pressures continue to have an impact on foreign exchange rates, the cost of raw materials and the price of fuel gas in the Asian region.

“Nevertheless, we believe that PGB will continue to stay resilient, given its long-term contracts and prospected bids, sustained and positive revenue growth, and near 100% plant utilisation across all of its business segments,” the research firm said in a note.

Kenanga Investment is also positive on PGB and kept its earnings growth projection for the company at 10% in FY2023 before normalising to 1% in FY2024, noting that as gas prices are projected to soften in the near term, a recovery is expected in FY2023.

Meanwhile, it said PGB’s medium-term earnings growth will be driven by a new RM541 million gas pipeline project to cater to an independent power producer in Pulau Indah as well as a RM460 million gas compressor station project in Kluang.

“Over the longer term, a 52 megawatt power plant in Sipitang, Sabah (expected commissioning in 2026) will support earnings growth,” it said in a separate note.

As such, the research firm has maintained its “market perform” call on PGB with an unchanged TP of RM17.13 per share.