RH Petrogas

RH Petrogas: UOB Kay Hian initaites Coverage with Buy Call and $1.60 TP. House note that RH Petrogas is the most balanced upstream O&G company listed on SGX. In a blue-sky scenario, RHP could be worth $2.02 in 2014 andS$3.21 in 2015. House also present alternative valuation method for RHP in 2014 and 2015, by valuing RHP’s assets individually, as its share price would likely rerate upwards if its exploration and development initiatives are successful. Believe KrisEnergy is a good investment in the long run, and RHP’s valuations should re-rate towards KrisEnergy’s valuations as the latter is trading at a significant discount despite both companies having similar 2P+2C (refer to Appendix III for technical description) figures.