The research house said the group's FY20 results met its expectations with core profit rising 6% to RM2bil, which was 1% below its and consensus estimates.
It's total net dividend per share (NDPS) of 27 sen, which brought full year NDPS to RM1.27 per share versus 82 sen in 2019 beats its forecast of RM1.22 per share.
"In the past one year (FY20), PETGAS has shown its earnings resiliency by not affected by the pandemic as the IBR framework safeguarded its earnings for 2020-2022 under the RP1.
"As such, earnings for GT, GP and RGT are fairly predictable while Utilities is dependent on operational efficiency," said Kenanga.
It added that earnings certainty is high despite limited earnings growth prospects.
Kenanga launched its new FY22 estimates with 1% earnings growth with NDPS for FY21-22 based on 85% earnings payout ratio.
It maintained "market perform" on the stock with a higher sum-of-parts-driven target price of RM16.97 from RM16.85 as it rolled over its valuation base to FY21.