STOCKS NEWS THAILAND-Gas price hikes to lift PTT's 2013-14 earnings-CIMB
Thailand's earlier-than-expected plan to raise the prices of liquefied petroleum gas (LPG) and natural gas for vehicles (NGV) in 2013 would likely raise 2013-14 earnings by 5.1 percent for PTT Pcl, the country's biggest energy firm, CIMB said.
"The plan to raise the prices of NGV and LPG in 2013 would likely be positive for PTT at the expense of consumers. We believe this plan is achievable as it comes together with proposed subsidies for low income earners," the CIMB report said.
Last week, Energy Minister Pongsak Raktapongpaisal announced a plan to raise the prices of NGV and LPG by 16-37 percent from the currently-capped prices, aimed at lowering the country's oil fund deficit due to larger subsidies for LPG and NGV.
"Trading at a distressed valuation due to the ongoing subsidy, we believe PTT's valuation discount gap could narrow once this plan is implemented," the broker said.
The broker maintained an 'outperform' rating for the stock, with target price of 391 baht. PTT shares were up 0.3 percent at 329 baht at the midsession break of 0530 GMT.
1413 (0713 GMT)
(Reporting by Viparat Jantraprap in Bangkok; Editing by Jijo Jacob)