Narrow-moat APA Group is a high-quality company offering an attractive yield. We anticipate strong near-term revenue growth, driven by elevated inflation that enhances Consumer Price Index-linked tariffs and the completion of ongoing developments. APA is well-positioned to benefit from the transition to renewable energy, with continued investments in wind and solar farms. Additionally, the group's core gas transmission networks will gain from the increasing use of gas to support intermittent renewable power supply. APA is also poised to assist remote mines in Western Australia in replacing diesel generators with a combination of solar panels, batteries, and gas turbines, which is expected to lower carbon emissions and operating costs for these mines.
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