Tuesday, December 27, 2011

Petronas Gas advances in early trade

KUALA LUMPUR (Dec 27): PETRONAS GAS BHD [] shares advanced in early trade on Tuesday after MIDF Research maintained its Buy call on the stock and raised its target price to RM15.60 (from RM14.40).

At 9.05am, Petronas Gas rose 10 sen to RM14.24.

MIDF Research in a note Dec 27 said that taking into account Petronas Gas' future prospectus, potential earnings upgrade and good dividend yield, the research felt it more justifiable to raise its valuation to its historical mean since 2007of 18.4 times, from a conservative 16.5 times PER (1-SD below) implied previously.

'We like Petronas Gas' sole-ownership of Peninsular Malaysia's gas pipelines system and the up-coming re-gasification facility in Melaka, leveraging on the gas sector liberalisation initiatives,' it said.

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