PGAS has corrected around 25% YTD, with the recent weakness driven largely by market sentiment rather than changes in the company's fundamentals. Following the ex-dividend adjustment and broader market volatility, the stock is now trading at a valuation that our analyst believes does not fully reflect its earnings potential and cash-generating ability.

Despite the share price correction, PGAS delivered a solid 1Q26 performance, with net profit growing 46% YoY to US$90mn, supported by stronger distribution margins. The company also continues to benefit from stable USD-denominated cash flows and a strong balance sheet, with more than US$550mn in net cash.
 

Investor attention has recently shifted toward the company's upcoming dividend payment of Rp125.61/share on 24 June 2026, which translates into an attractive ~9% dividend yield at current prices. In addition, recent insider buying by management has reinforced confidence that the current share price may not accurately reflect the company's long-term value.
 

Looking ahead, our analyst expects PGAS to maintain healthy earnings growth and generate around US$400mn of annual free cash flow. Given its compelling valuation, strong balance sheet, and attractive dividend profile.