Revenue performance of PGAS in 1Q20 was stagnant with a decrease in net profit by 26.6% YoY due to forex loss of USD63 million. We predict that distribution volume will still decrease at around 8-10% MoM in May-June period due to Covid-19 pandemic. PGAS may potentially experience margin reduction in 2020, but we estimate that distribution volume increase by 4%-6% in 2021 will support the performance. We initiate to BUY with target price of IDR1,400.
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