PGAS

Indonesia Power and Gas
Jakarta Comp Rp 2,642.5
12M hi/lo Rp4,150/1,750
12M price target Rp5,250
±% potential +41%
Target set on 5 Jan 10
Shares in issue 24,240.0m
Free float (est.) 45.1%
Market cap US$9,794m
3M average daily volume Rp105.5bn (US$11.2m)

PGas has the highest ROA and ROE in CLSA power coverage (56 stocks) and
should remain so in the foreseeable future. Yet, it is trading below peer
average P/E and EV/EBITDA metrics. PGas offers 26% pa core eps growth for
2010-2011CL. Reiterate a conviction buy, with a target of Rp5250/sh based
on DCF meaning 16x 2011CL P/E.

JP MORGAN