TENAGA (5347) - RHB Research maintains Buy on Tenaga
KUALA LUMPUR: RHB Research has kept a Buy on Tenaga with a target price of RM18.60 based on 15.4 times revised FY15F EPS, at an unchanged 10% premium over Tenaga’s 5-year historical average of 14 times.
The research house said on Friday that the revised version is to reflect an improved regulatory risk environment with theintroduction of the Fuel Cost Pass-Through (FCPT) mechanism in thenew energy policy effective Jan 1, 2014.
"We raise our FY15-17 net profit forecasts by 20% each to factor in lowergas consumption and a lower tax rate. Tenaga, a heavy fuel user, hasemerged a clear winner from the current oil price rout. We also like its “renaissance” in power generation," it said.
It added that Tenaga, a heavy fuel user, has emerged a clear winnerfrom the current oil price rout.
It is also regaining lost ground in the morelucrative power generation business vis-à-vis transmission anddistribution, having emerged as the biggest winner of new power plant projects in Malaysia in recent years, it said.
http://www.thestar.com.my
KUALA LUMPUR: RHB Research has kept a Buy on Tenaga with a target price of RM18.60 based on 15.4 times revised FY15F EPS, at an unchanged 10% premium over Tenaga’s 5-year historical average of 14 times.
The research house said on Friday that the revised version is to reflect an improved regulatory risk environment with theintroduction of the Fuel Cost Pass-Through (FCPT) mechanism in thenew energy policy effective Jan 1, 2014.
"We raise our FY15-17 net profit forecasts by 20% each to factor in lowergas consumption and a lower tax rate. Tenaga, a heavy fuel user, hasemerged a clear winner from the current oil price rout. We also like its “renaissance” in power generation," it said.
It added that Tenaga, a heavy fuel user, has emerged a clear winnerfrom the current oil price rout.
It is also regaining lost ground in the morelucrative power generation business vis-à-vis transmission anddistribution, having emerged as the biggest winner of new power plant projects in Malaysia in recent years, it said.
http://www.thestar.com.my
