Company Name: PETRONAS GAS BHD
Research House: HWANGDBS
KUALA LUMPUR: Shares of PETRONAS GAS BHD  (PetGas)surged to multi-year high of RM12.92 in late afternoon trade as investors viewed the stock had more upside following the Melaka regasification plant and Kimanis power plant.
At 3.41pm, it was up 62 sen to RM12.92 with 2.21 million shares done.
The FBM KLCI rose 5.92 points to 1,560.16. Turnover was 585.13 million shares valued at RM1.16 billion. The broader market was mixed with 315 gainers, 332 losers and 341 stocks unchanged.
Hwang DBS Vickers Research said PetGas was eyeing new opportunities in stable utility businesses given its strong balance sheet with RM2.3 billion net cash.
'Our discounted cashflow-derived target price is unchanged at RM13.50 a share,' it said.
The research house said PetGas' Melaka regasification plant could lift FY12-FY13F net profit by between 10% and 20% per annum and there was an 8% upside from the new Kimanis power plant.
'The power purchase agreement (PPA) for Kimanis will be finalised soon, while the regasification service agreement (RSA) may be signed by end 2011 to be able to commission the plant in July 2012,' it said.