GAS Malaysia Bhd announced that 26.92 km of pipeline was constructed in quarter two of calendar year 2025 (2QCY25), bringing the total for financial year 2025 (FY25) to 58.95km.
Included in these new constructed pipelines are:
(i) Lipat Kajang (7.8km),
(ii) Pasir Gudang (4.1km),
(iii) Tangkak (5.5km),
(iv) Sitiawan (4.9km).
“The total pipeline commissioned YTD25 is 2,991km. Rubber gloves remain the highest in volume consumption at 16.9 m GJ (22% of total volume), followed by consumer products at 15.2m GJ (20%) and others (consisting of chemicals, chemical and industry gas, automobile and E&E) at 11.5m GJ (15%),” said MBSB Research.
This is in tandem with the expected recovery of the glove sector, with anticipated ASEAN market to grow at a compounded annual growth rate of 7.5-7.9% from 2025 onwards, driven by sustained healthcare needs and expansion of food sectors.
The new U.S. tariffs on Chinese-made gloves, which increased to 50% in early 2025 and are set to rise to 100% by January 2026, are also a major positive for domestic rubber glove players.
GMB highlighted that the higher administration cost in the first half of financial year 2025 (1HFY25), which is in line with GMB’s expected allocation of manpower of +RM32 mil per year and the increased sales volume during the period.
GMB had suggested that the volatility in gas volume in 2HFY25 will be reduced.
Approximately +2-4% of volume addition is expected in 2HFY25. This is on the back of the reduced impact from the Putra Heights explosion.
Not forgetting, the post-tariff economic condition that may favour GMB’s clients over higher demand from their consumers, and the expected increased in capital expenditure from RP3.
On RP3, GMB had submitted its request to add more capital expenditure in RP3 in 1QCY25. This is to ensure better supply reliability for its customers, as well as increase its preparedness for possible blowout incidents.
Post-Putra Heights explosion, GMB noted that only 2% of FY24 volume was impacted, hence have little impact to the overall bottom-line.
“All in all, we maintain our earnings forecast for FY25-27. Likewise, we maintain our NEUTRAL call for GMB with an unchanged target price of RM4.48,” said MBSB.—Aug 25, 2025
Main image: ABB
