Coming together; upgrade to Buy. Tenaga received confirmation for a fuel
sharing mechanism with the government and PETRONAS. Each party will
equally split the additional cost incurred of RM3.1b for burning pricey
oil and distillates which means Tenaga will get a RM2b cheque soon. The
investment proposition for Tenaga has improved; a tariff revision is
very much in the bag. We upgrade the stock to BUY based on higher
earnings outlook and better balance sheet health, with a new target
price of RM6.90 (+17%) pegged to 13x FY12 PER.
Maybank research (2 December 2011)
Click here for full report
No comments:
Post a Comment