Professional Documents
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TA Securities
Tax Boost
Hold
James Ratnam
james@ta.com.my
Review
PGBs FY14 results surpassed both ours and consensus expectations,
mainly due to a jump in JV (Kimanis power plant - KPP) profit in 4Q14.
Reported net profit decreased by 11.3% YoY to RM1.8bn, attributable to
the RM626.4mn investment tax allowance, relating to the Sg. Udang RGT
that was recognised in the preceding year. Core net profit, after excluding
RM52.0mn forex loss, amounted to RM1.9bn, 15% above our estimate. This
was largely due to JV & associate contribution jump to RM242.3mn in
4Q14, thanks to, 1) the commissioning of all three units of KPP, and 2)
recognition of an undisclosed amount of deferred tax allowance arising
from the investment tax allowance granted to KPP. The group also declared
dividend of 15 sen/share (4Q14: 40 sen/share). That brings the total
dividend in FY14 to 55 sen/share, similar to FY13.
www.taonline.com.my
Share Information
Bloomberg Code
PTG MK
Stock Code
6033
Listing
Main Market
Share Cap (mn)
1978.7
Market Cap (RMmn)
43,176
Par Value
1.00
52-wk Hi/Lo (RM)
24.96/20.60
12-mth Avg Daily Vol ('000 shrs)
1073.0
Estimated Free Float (%)
21.5
Beta
1.16
Major Shareholders (%)
Petroliam Nasional Berhad - 60.66
EPF -13.09
Kumpulan Wang Persaraan -5.57
Forecast Revision
Forecast Revision (%)
Net profit (RMm)
Consensus
TA/Consensus (%)
Previous Rating
FY15
nil
1,680
1,712
98
Hold (maintained)
FY16
nil
1,683
1,810
93
Financial Indicators
Net debt/equity (%)
FCPS (sen)
P/FCPS (x)
ROA (%)
NTA/Share (RM)
Price/ NTA (x)
5-year EPS CAGR (%)
FY15
(10.4)
145.5
15.0
11.4
5.7
3.8
4.0
FY16
(14.7)
174.1
12.5
10.9
5.9
3.7
4.8
Scorecard
vs. TA
vs. Consensus
% of FY
115
111
Above
Above
Impact
Outlook
We expect the FY15 base profit to benefit from full year contribution from
the full commissioning of the KPP. We estimate the power plant to
contribute approximately 4% to net earnings, before taking into account
any effect of tax allowances.
Shara Performance
Price chg (%)
1 mth
3 mths
6 mths
12 mths
Page 1 of 3
KLCI
3.8
0.2
(2.9)
(1.0)
LNG demand from the power sector is expected to remain low, given the
increase in usage of coal and hydro power plants. That said, the impact on
PGas will be partially offset by capacity reservation by Petronas and
storage fees under the Regasification Service Agreement.
Valuation
Maintain Hold with 23.67 TP, based on DCF methodology. The stock is
currently trading at 25.7x FY15 PER, but significant downside will be
cushioned by the stocks attraction as a dividend play.
PETGAS
4.6
3.6
(1.1)
(2.7)
Source: Bloomberg
TA Securities
18-Feb-15
3Q14
708,114
264,598
150,781
1,123,493
4Q14
706,894
252,390
152,320
1,111,604
% QoQ
(0.2)
(4.6)
1.0
(1.1)
% YoY
6.2
24.0
(4.2)
8.1
FY13
2,686,704
867,244
338,191
3,892,139
FY14
2,766,937
1,008,559
616,220
4,391,716
% YoY
3.0
16.3
82.2
12.8
350,302
11,274
73,960
435,536
435,693
45,149
74,680
555,522
417,844
47,139
73,913
538,896
(4.1)
4.4
(1.0)
(3.0)
19.3
318.1
(0.1)
23.7
1,653,662
127,726
163,477
1,944,865
1,708,334
195,905
307,979
2,212,218
3.3
53.4
88.4
13.7
52.6
5.5
46.5
42.4
61.5
17.1
49.5
49.4
59.1
18.7
48.5
48.5
(3.9)
9.5
(2.0)
12.3
237.3
4.3
61.5
14.7
48.3
50.0
61.7
19.4
50.0
50.4
0.3
31.9
3.4
Sales RM'000
Gas processing
Gas Transportation
Total
4Q13
361,809
303,643
665,452
3Q14
377,231
330,883
708,114
4Q14
376,325
330,569
706,894
% QoQ
(0.2)
(0.1)
(0.2)
% YoY
4.0
8.9
6.2
FY13
1,497,435
1,189,269
2,686,704
FY14
1,480,247
1,286,690
2,766,937
% YoY
(1.1)
8.2
3.0
Gross Profit
Gas processing
Gas Transportation
Total
144,434
205,868
350,302
177,812
257,881
435,693
171,512
246,332
417,844
(3.5)
(4.5)
(4.1)
18.7
19.7
19.3
751,309
902,353
1,653,662
701,668
1,006,666
1,708,334
(6.6)
11.6
39.9
67.8
47.1
77.9
45.6
74.5
50.2
75.9
47.4
78.2
Sales RM'000
Throughput services sales
Utilities sales
Regasification
Total
Gross Profit
Throughput sales
Utilities
Regasification
Total
Gross Margin (%)
Throughput services
Utilities
Regasification
Total
Note: Throughput services sales is a combination of gas processing and gas transportation.
Source: PDB, TA Research
2012
3,576.8
1,781.2
49.8
1,859.6
1,404.9
1,295.9
65.5
(5.2)
33.3
50.0
2.3
15.3
Page 2 of 3
2013
3,892.1
1,903.7
48.9
1,896.4
2,078.9
2,137.5
108.0
64.9
20.2
55.0
2.5
20.3
2014
4,391.7
2,142.1
48.8
2,354.5
1,843.2
1,895.2
95.8
(11.3)
22.8
55.0
2.5
17.1
2015E
4,300.6
2,140.5
49.8
2,211.0
1,680.4
1,680.4
84.9
(11.3)
25.7
56.0
2.6
14.8
2016F
4,333.8
2,141.5
49.4
2,214.2
1,682.8
1,682.8
85.0
0.1
25.7
56.0
2.6
14.1
TA Securities
18-Feb-15
4Q13
1,028.1
479.9
(19.2)
(8.0)
18.7
471.4
(77.7)
(0.0)
393.7
401.7
20.3
46.7
45.9
38.3
16.5
3Q14
1,123.5
568.6
(18.7)
(16.0)
15.2
549.2
(130.5)
0.0
418.6
434.7
22.0
4Q14
1,111.6
495.9
(19.6)
(35.5)
242.3
683.2
(113.0)
1.1
571.3
606.8
30.7
50.6
48.9
37.3
23.8
44.6
61.5
51.4
16.5
QOQ%
(1.1)
(12.8)
nm
nm
> 100
24.4
nm
nm
36.5
39.6
YoY %
8.1
3.3
nm
nm
> 100
44.9
nm
nm
45.1
51.0
FY13
3,892.1
1,962.3
(50.1)
(58.6)
42.8
1,896.4
182.5
(0.0)
2,079.0
2,137.5
108.0
FY14
4,391.7
2,194.0
(76.3)
(52.0)
288.7
2,354.5
(512.4)
1.1
1,843.2
1,895.2
95.8
50.4
48.7
53.4
(9.6)
50.0
53.6
42.0
21.8
YoY %
12.8
11.8
52.3
nm
> 100
24.2
nm
nm
(11.3)
(11.3)
Disclaimer
The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and
opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts.
We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may
have an interest in the securities and/or companies mentioned herein.
for TA SECURITIES HOLDINGS BERHAD(14948-M)
(A Participating Organisation of Bursa Malaysia Securities Berhad)