From just an initial gas processing and transportation company, PetGas is coming of age. The group is will transform soon into an integrated utility group with stakes in power generation and regasification. There is little doubt on the expertise of the company or the fundamentals of its gas business, but this is hardly the angle one should see the stock from. The real story plays to us is this - PetGas is not just another staid utility relying on its oligopoly status ' which tends to breed complacency. On the contrary, it is actually a fast-growth player under its expansion plan and that's where things get interesting fast, especially when it practically controls most of the growing gas industry. In fact, its growth is already secured in the bag for the next three years, led by Melaka RGT (FY13), Kimanis IPP (FY14) and Lahad Datu RGT (FY15). To be sure, the same strong catalysts have also pushed the share price to double since Jan 2010, putting its current PER valuation at an all-time high and likely close to fair value already. Be that as it is, we continue to like PetGas' sustainable earnings story and its rising opportunities. We are initiating coverage with a MARKET PERFORM call and a price target of RM19.90/SOP share.