Equity Analysis /
Indonesia

ID : Perusahaan Gas Negara - Challenged by tax disputes

    Aurelia Barus
    Aurelia Barus

    Research Analyst

    CGS-CIMB
    12 April 2021
    Published by

    FY20’s operational results were in line with our estimates, with EBITDA of US$668m (-28% yoy), but below consensus’ expectations. FY20 core loss was wider-than-expected at US$180m (-243% yoy), mainly due to higher-than-expected tax case-related expenses. Reduce call retained with unchanged TP of Rp1,300 (DCF valuation). Higher tax penalties and lower margins could act as de-rating catalysts.