PGAS - Slump is Temporary, Class is Permanent

KBVS Update
Thursday, 23 July 2026

PGAS – Slump is Temporary, Class is Permanent
(Initiate BUY; TP at IDR2,000)

■ PGAS is Indonesia’s largest natural gas transmission and distribution company, controlling >90% share in Indonesia’s commercial gas trading.

■ The government's proposed USD13/MMBtu industrial gas price cap has stoked investor fears, but we believe the impact is manageable — LNG-linked gas makes up only ~21% of PGAS' gas trading mix (1Q26), and margin compression will be shared between upstream and downstream segments.

■ We project PGAS' revenue to reach USD4.20 bn in FY26F and USD4.38 bn in FY27F, with net profit forecast at USD271 mn and USD283 mn respectively.

■ Initiate BUY with DCF-based TP of IDR2,000/share, implying 29.0% upside and 10.1x FY26F P/E.

Regards,
Adolf R B Setiadi – KBVS Research Team