Comparison of utility companies listed on Malaysia, Singapore and Indonesia

Publish Date: 03-10-2019

The market is expecting the interest rate to decrease furthermore due to the sluggish economy as central banks are opting a more dovish stance in order to stimulate the economy. Hence, the market is now moving their money into Real Estate Investment Trust (REIT) as lower interest will now provide them with a better alternative compared to bond due to their relatively defensive nature. Also, a lower interest rate environment will reduce the REITs' financing cost.

Besides REITs, utility companies also have similar characteristics. They had taken up huge amount of debt to fund their infrastructure, and they are relatively defensive. However, not much attention had been put on this industry, making them a good bet for late-cycle investment.

Here's the comparison of the utility companies listed on Malaysia, Singapore and Indonesia. Among the peers. Petronas Gas Bhd and Taliwork Bhd are really in great shape, delivering great ROE, Profit Margin and also a pretty generous dividend.