KUALA LUMPUR, Feb 21 (Bernama) -- Petronas Dagangan Bhd’s (PetDag) shares on Bursa Malaysia emerged as the top gainer in early trade, rising 5.5 per cent, after posting stronger results in the financial year ended Dec 31, 2024 (FY2024).
At 10.38 am, the counter rose RM1.04 to RM20.30, with 168,000 shares traded.
PetDag’s net profit increased to RM1.09 billion in FY2024 compared to RM943.08 million in FY2023 driven by higher gross profit across all segments, despite a rise in expenditure, the group said in a filing with Bursa Malaysia yesterday.
Meanwhile, revenue grew to RM37.95 billion in FY2024 from RM37.55 billion a year earlier, supported by a 3.0 per cent increase in sales volume, despite a 2.0 per cent decline in average selling prices.
PetDag has declared an interim dividend of 25 sen per ordinary share and a special dividend of 20 sen per ordinary share for the quarter ended Dec 31, 2024.
Hong Leong Investment Bank Bhd (HLIB) said PetDag’s results were within its (100 per cent) and slightly exceeded the street’s estimates (104 per cent).
“Barring a significant swing in oil prices, we expect the group’s performance to remain stable in the coming quarters.
“PetDag has demonstrated resilience in the diesel market post-subsidy cuts, supported by its strong market share in the commercial segment and fleet card system,” it said in a research note today.
HLIB expects the targeted subsidy programmes for RON95, likely to be introduced in the second half of 2025, will have a minimal impact on sales volume in the near term, primarily affecting the Top 15 per cent (T15) income population segment, which can absorb the price hikes.
“Furthermore, Malaysia’s automotive sector total industry volume for the automotive sector hit a record high of 817,000 units in 2024, with electric vehicles only accounting for 5.6 per cent of the total sales.
“Hence, we reckon the demand for RON95 will remain supported by the dominance of internal combustion engine vehicles in Malaysia, at least in the near-to-medium term,” it added.
Therefore, HLIB maintained its forecast and ‘buy’ rating on PetDag, keeping the target price unchanged at RM22.49.
-- BERNAMA
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