CIMB Perusahaan Gas Negara Result note - On track for growth

(PGAS IJ / PGAS.JK, OUTPERFORM - Maintained, Rp2,500 - Tgt. Rp3,200, Utilities)

PGAS announced both FY08 and 1Q09 results. Its FY08 results announcement had been delayed by accounting issues associated with forex loss translation. For 1Q09, PGAS posted a profit of Rp1.35tr, up 76% yoy, and 42% qoq. The results are 16% above our forecast, and 10% higher than market expectations due to higher sales and better margins. With the good 1Q09 results and strong outlook, we have raised our EPS forecasts by 7-8% for FY09-11 on higher sales volume and margin assumptions. We also raise our DCF-based target price to Rp3,200 (from Rp2,800) after our EPS upgrade Maintain Outperform for its strong earnings growth.