Stock Name: TENAGA
Company Name: TENAGA NASIONAL BHD
Research House: MIDF
Company Name: TENAGA NASIONAL BHD
Research House: MIDF
MIDF Research has reiterated its "buy" call on Tenaga Nasional Bhd (TNB) and maintained the target price of RM7.98, driven by favourable power demand and gains from foreign exchange (forex) activities.
MIDF in a research note today said power demand is expected to grow by 4.8 per cent this year supported by commercial and industrial activities on the back of sustained economic growth.
Meanwhile, the strengthening ringgit against the US dollar and Japanese yen, will see more forex gains by the national electricity company.
"Based on the current levels of exchange rate, TNB could capture more than RM200 million in forex gains," it said, adding, every one per cent gain in exchange activities against US dollar and Japanese yen, is estimated to raise the company's net earnings by 1.2 per cent and 1.4 per cent respectively.
For financial performance, it said TNB's first half financial year 2011 result, is likely to be within its expectation of RM1.2 billion.
The results are expected to be released tomorrow.
However, the second quarter financial year 2011 results is estimated to be lower by 40 per cent year-on-year and 45 per cent quarter-over-quarter, due to higher operating costs reflected by an increase in coal prices, MIDF said. -- Bernama
MIDF in a research note today said power demand is expected to grow by 4.8 per cent this year supported by commercial and industrial activities on the back of sustained economic growth.
Meanwhile, the strengthening ringgit against the US dollar and Japanese yen, will see more forex gains by the national electricity company.
"Based on the current levels of exchange rate, TNB could capture more than RM200 million in forex gains," it said, adding, every one per cent gain in exchange activities against US dollar and Japanese yen, is estimated to raise the company's net earnings by 1.2 per cent and 1.4 per cent respectively.
For financial performance, it said TNB's first half financial year 2011 result, is likely to be within its expectation of RM1.2 billion.
The results are expected to be released tomorrow.
However, the second quarter financial year 2011 results is estimated to be lower by 40 per cent year-on-year and 45 per cent quarter-over-quarter, due to higher operating costs reflected by an increase in coal prices, MIDF said. -- Bernama
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