Results preview Tenaga 2Q core net profit to be at RM290m, says Maybank IB Research
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Results preview Tenaga 2Q core net profit to be at RM290m, says Maybank IB Research
Results preview Tenaga 2Q core net profit to be at RM290m, says Maybank IB Research |
Business & Markets 2014 |
Written by theedgemalaysia.com |
Tuesday, 22 April 2014 09:21 |
KUALA LUMPUR (April 22): Maybank IB Research has maintained its Buy rating on Tenaga Nasional Bhd (TNB) at RM11.94 with an unchanged target price of RM14 and said it estimates TNB's 2QFY8/14 core net profit at about RM920 million (+4% YoY, -25% QoQ), 19% of the research house’s FY8/14 forecast.
In a note Tuesday, the research house said coal generation declined by 14% q-o-q, leaving TNB dependent on costlier LNG-sourced gas for generation.
TNB is scheduled to release its quarterly earnings results on April 24.
“We continue to be bullish on TNB, as we believe investors have yet to price in the company’s longer-term earnings growth potential. Present expectations merely revolve around a stable earnings base under the IBR, in our view.
“Reiterate our Buy rating on the stock, with an unchanged target price of RM14,” it said.
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