Target RM21.32 (Long Term: Out Perform)
PetGas said at the 4th national energy forum that it will own the LNG regasification plant in Pengerang, ending rumours that a Dialog consortium could take over the project. This is positive as it removes uncertainty and reaffirms the long term growth outlook for PetGas. PetGas remains an Outperform and our top utility pick. We maintain our earnings estimates and our DCF based (WACC: 7.7%) target price. This formal confirmation by PetGas that the company will own and operate the Pengerang regasification plant could catalyse the stock.