Tenaga Nasional; Buy; RM9.43
Price Target: RM10.80; TNB MK
Improving outlook

FY13 core profit within our and market expectations.Beneficiary of subsidy rationalisation and lower coal price. Key catalysts: capacity growth and implementation of fuel cost pass through mechanism. Maintain BUY rating and RM10.80 TP.

Petronas Gas; Buy; RM24.52
Price Target: RM28.60; PTG MK
On track for growth

9M13 core earnings within our and market expectations. Stronger earnings led by larger contribution from Melaka regas plant. Key catalysts: new regas plant and Petronas’ larger gas capex. Maintain BUY with higher TP of RM28.60

 
Malaysia Airports; Hold; RM8.41
Price Target: RM7.60; MAHB MK
Passenger growth continues

Strong passenger growth lift revenues. Impact to bottomline moderated by higher user fee. KLIA2 on track for May 2014 opening. Maintain HOLD with SOP-based RM7.60 TP.

Petronas Dagangan; Fully Valued; RM30.60
Price Target: RM19.40; PETD MK
Slow 3Q13

3Q13 net profit in line with expectations, hit by sharp drop in MOPS prices in Sep. 4Q13 likely to be better due to margin recovery as  MOPS prices have stabilised in Oct. Declared interim single tier DPS of 17.5 sen. Maintain FULLY VALUED and RM19.70 TP.

Source: HwangDBS Research - 1 Nov 2013