FIGURE 1: TENAGA NASIONAL BHD LAST 5 YEARS SHARE PRICE TREND
**analysis based on 2018 annual report.
1. GENERAL INTRO: TENAGA NASIONAL BHD (TNB) is the largest utilities company in Malaysia.
2. NOTABLE POINTS:
a. In 2018 report, TNB reported a total domestic generating
capacity of 10,917.53 MW, domestic transmission network of length 23,082
km, domestic distribution network length of 660,038 km, services reach
~9.65 million customers and total units of electricity sold of
118,814.46 GWh.
3. IS THIS COUNTER A STRONG GROWTH STOCK?
a. REVENUE RANGE (RM million): 50,392.5 million as reported in 2018 annual report, this is a high revenue company.
b. SHARE PRICE: from 20185-2020, share price ranged from ~ RM10.00 to RM16.00.
c. EARNING PER SHARE (EPS): earning per share in last 5 years was fluctuating, ranging from 65.4 to 130.2sen
d. FUTURE POTENTIAL/PROSPECTS: share price expect to be stable in the next few years
e. CAPITAL EXPENDITURE (CAPEX): spending on purchase of new
fixed assets is RM 11,819.3 million, around 7% of total assets.
4. IS THIS A STRONG DIVIDEND STOCK?
a. DIVIDEND YIELD: in 2018 financial year, TNB declared a
dividend payout of 53.27 sen per share to shareholders, which amounts to
a dividend yield of 4.11%.
b. DIVIDEND PAYOUT RATIO: Hence, in 2018 financial year, TNB
paid out 81% of its earnings to shareholders in the form of dividend.
c. CONSISTENCY: the dividend payout was consistent, the
dividend paid to shareholders in the last five years ranged from 29 to
61 sen.
5. IS THE MANAGEMENT PERFORMANCE GOOD?
a. RETURN ON EQUITY (ROE): in 2018 financial year, TNB reported
a moderate return of shareholders’ equity, at 8.3%. last five years ROE
ranged from 8.3 to 16.3%
b. COST-TO-INCOME RATIO: cost-to-income ratio is high, at 898%.
6. OTHER INDICATORS:
a. CASH FLOW: cash flow is positive, around RM 7,598 million, equivalent to RM 1.33 per share.
b. SUPPORT BY INSTITUTIONAL INVESTORS: this counter is very well
supported by institutional investors, there are 30 institutional
investors at top 30 major shareholders list, including LEMBAGA TABUNG
HAJI (0.53%), EPF (13.87%), PERMODALAN NASIONAL BERHAD (2.7%), SKIM
AMANAH SAHAM BUMIPUTERA (9.1%), KUMPULAN WANG PERSARAAN (DIPERBADANKAN)
(5.42%) and insurance companies/investment funds. Its major shareholders
is Khazanah Nasional Berhad (28.76%).
Disclaimer: The content of the blog posts are for sharing purpose
only. Readers are encouraged to carry out further research and analysis
as well as follow up latest update information before making any
investment decisions.
http://louisesinvesting.blogspot.com/2020/01/comments-on-tenaga-nasional-bhd-5347.html
