KUALA LUMPUR: Petronas ''Gas Bhd shares rose on Thursday, Aug 18 after posted net profit RM386.74 million on the back of revenue RM916.55 million for the three months ended June 30, 2011, due to higher gas processing revenue and utilities sales, and lower tax expense.
At 9.30am, Petronas Gas added 10 sen to RM13.64 with 46,000 shares traded.
MIDF Research maintained its Buy call on the stock and raised its target price to RM14.40 (from RM13.10) after incorporating Petronas Gas's net cash of RM1.27 per share.
The research house said this was to reflect better the company's intrinsic value, adding that its valuation for Petronas Gas was still pegged at unchanged 16.5x PER.
Petronas Gas is one of the defensive stocks that MIDF Research has identified as would outperform the market during uncertain period moving forward.
'We like PGas given its stable earnings, sustainable cash flows, net cash position and attractive 3.7% dividend yield.
'A cash rich company is also well positioned to acquire any earnings-accretive asset. In addition, potential listing of its 20-owned associate, Gas Malaysia Sdn Bhd, is another factor to generate buying interest,' the research house said in note Aug 18.
At 9.30am, Petronas Gas added 10 sen to RM13.64 with 46,000 shares traded.
MIDF Research maintained its Buy call on the stock and raised its target price to RM14.40 (from RM13.10) after incorporating Petronas Gas's net cash of RM1.27 per share.
The research house said this was to reflect better the company's intrinsic value, adding that its valuation for Petronas Gas was still pegged at unchanged 16.5x PER.
Petronas Gas is one of the defensive stocks that MIDF Research has identified as would outperform the market during uncertain period moving forward.
'We like PGas given its stable earnings, sustainable cash flows, net cash position and attractive 3.7% dividend yield.
'A cash rich company is also well positioned to acquire any earnings-accretive asset. In addition, potential listing of its 20-owned associate, Gas Malaysia Sdn Bhd, is another factor to generate buying interest,' the research house said in note Aug 18.
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