From The Edge today
"the much anticipated dividend play company en route to listing this Monday has announced a set of poor results-53.5% drop in net profit for the first quarter ended March 31 to RM34.54 million from RM74.41 million....The government regulates n approves the buying and selling of natural gas..In June 2011, the buying price was raised by more than 25% but the selling price went up by only 7% resulting in a major margin compression."

Gas Malaysia has to buy the gas n resell the gas but is subject to governmental regulations. It cannot simply increase its selling prices or the government will suffer a strong backlash. It does not own any oil and gas concessions.

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Added on June 10, 2012, 3:26 pmMaxis is surely a far safer bet than Gas Malaysia. It surely has not problem maintaining its dividend rate for the next few years. What I gather from my IT friends, its mobile network has already been upgraded to 4G n does not need much capex.
Digi is only upgrading now resulting in a lot of subscribers unable to make or receive calls for weeks.

This post has been edited by Oracles99: Jun 10 2012, 03:26 PM

According Alex Lu, GASMSIA is now trading at a PE of 24 times -the same PE for Petronas Gas. Isn't Petronas Gas a better buy?