PGAS
Contact our analyst Eka
Post Merger Result
February 2019
Price Rp2,610
Target price Rp2,960
February 2019
Price Rp2,610
Target price Rp2,960
Strong 2018FY Results post acquisition
- •In 2018, PGAS's consolidated revenue reached USD 3.87 billion, +8.4% yoy (as restated)
- Gross profit reached USD 1.3 billion +11% yoy compared to 2017 USD 1.18 million.
- EBITDA margin increased to 31.0% from 30.3%.
- Net Income grew +55.3% to USD 305 million, from USD 198 million in 2017.
- PGAS is now the holding company for the integrated gas (midstream and downstream) business.
- PGAS’s distribution volume reached new heights in 2018 at 967 MMScfd +8% yoy from 898 MMScfd in 2017.
- For 2019, PGAS is targeting volume at 900 – 950 MMScfd, unchanged from 2018.
- In Transmission, volume reached 2,101 MMscfd, +1% yoy.
- We expect PGAS revenue in 2019F to reach USD 4.06 billion or +5% yoy.
- HOLD with TP 2,960 with 13.4% Upside
- A DCF valuation with WACC at 8.35%, gives a revised target price of IDR 2,960 or 13.4% upside which is a 15.4x PE valuation within one year. HOLD
