Buy Petronas Gas shares: HwangDBS

HwangDBS Vickers Research is maintaining its "buy" call on Petronas Gas
Bhd with the target price raised to RM16.90 a share from RM15.50 earlier
due to promising outlook in the oil and gas industry.

The
research house, also optimistic over the company's strong earnings
growth from this year's financial year onwards, said the promising
outlook for the industry was supported by new pipelines and regas
plants.

It said strong earnings growth would be led by
contributions from the Melaka regas plant in FY2012 and the Sabah power
plant in 2013, it said in a review of the company, whose shares eased
four sen to RM15.40 on Bursa Malaysia at 11.30am today.

Petronas
Gas would be the prime beneficiary with the planned new pipelines in
Terengganu and new regas plants in Pengerang and Lumut, it said in a
statement.

It said the company was a main player in the current
volatile oil and gas market and might be rerated with imminent news of
project awards. -- Bernama