TENAGA - Significant Improvement In 2Q Expected

Stock Name: TENAGA
Company Name: TENAGA NASIONAL BHD

Research House: RHB

Price Call: BUY

Target Price: 7.60

TNB ' Significant Improvement In 2Q Expected         Outperform (Upgraded)

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''       Given that the gas supply situation has improved significantly to 1,100-1,150 mmscfd in 2Q (1Q: 1,050 mmscfd), we expect earnings to jump qoq. We estimate 2Q core net profit of RM500-600m (1QFY12: RM196m, 2QFY11: RM442m).

''       Fair value raised from RM6.50 to RM7.60 based on unchanged target FY13 PER of 15x and EPS of 50.8 sen after rolling over the valuation base year to 2013.

Source: RHB Research - 10 April 2012