Stock Name: PETGAS
Company Name: PETRONAS GAS BHD
MIDF Research Sdn Bhd has reiterated its "buy" recommendation on Petronas Gas (PGas) with a higher trading price of RM15.60 from RM14.40.
PGas ended trading today at RM14.40, up 26 sen from yesterday's closing of RM14.14.
"Taking into account its potential earnings upgrade and good dividend yield, we believe it is more justifiable to raise our valuation to its historical mean since 2007 of 18.4 times from a conservative 16.5 times PER (price earnings ratio) implied previously," MIDF said in its research note.
"We like PGas' sole ownership of Peninsular Malaysia's gas pipelines system and the up-coming regasification facility in Melaka, leveraging on the gas sector liberalisation initiatives," it said.
According to MIDF, the first import of LNG agreement, which had been signed between Petronas and GDF Suez was expected to kick off in the third quarter of next year.
MIDF also said the regasification business could generate RM100 million-RM240 million net profit to PGas from 2013-2015. -- BERNAMA
Company Name: PETRONAS GAS BHD
| Research House: MIDF | Price Call: BUY | Target Price: 15.60 |
MIDF Research Sdn Bhd has reiterated its "buy" recommendation on Petronas Gas (PGas) with a higher trading price of RM15.60 from RM14.40.
PGas ended trading today at RM14.40, up 26 sen from yesterday's closing of RM14.14.
"Taking into account its potential earnings upgrade and good dividend yield, we believe it is more justifiable to raise our valuation to its historical mean since 2007 of 18.4 times from a conservative 16.5 times PER (price earnings ratio) implied previously," MIDF said in its research note.
"We like PGas' sole ownership of Peninsular Malaysia's gas pipelines system and the up-coming regasification facility in Melaka, leveraging on the gas sector liberalisation initiatives," it said.
According to MIDF, the first import of LNG agreement, which had been signed between Petronas and GDF Suez was expected to kick off in the third quarter of next year.
MIDF also said the regasification business could generate RM100 million-RM240 million net profit to PGas from 2013-2015. -- BERNAMA
No comments:
Post a Comment