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
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