PTRO PLANS TO GIVE IDR67/SHARE DIVIDEND, OR A 4% RETURN FROM ITS CURRENT SHARE PRICES

PTRO: 1,450-1,900. IT IS TOO CHEAP TO BE TRUE. PTRO PLANS TO GIVE IDR67/SHARE DIVIDEND, OR A 4% RETURN FROM ITS CURRENT SHARE PRICES. PTRO NOW TRADES AT A P/E RATIO OF ONLY 5.2 X 2013 EPS OF IDR300 VERSUS ASIAN RIVALS OF 13X. THERE ARE SPECULATIONS THAT INDIKA GROUP WILL SELL PART OF ITS STAKE AT PTRO TO A STRATEGIC PARTNER TO HELP FINANCE CAPEX OF THE GROUP. ON PBV TERMS, PTRO NOW TRADES AT A PBV OF ONLY 0.86X VERSUS INDUSTRY OF 1.5X. IT IS ALSO TRADING AT A 68% DISCOUNT TO ITS NAVS OF IDR5,182. FAIR VALUE IS AT 13 X IDR300 = IDR3,300. IT IS A BUY AT ANY LEVELS.

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