KUALA LUMPUR (Dec 2): CIMB Equities Research cautioned that investors should be cautious over TENAGA NASIONAL BHD [] (TNB) over the compensation for gas shortage.
It said on Friday that compensation for the gas shortage was good news as Tenaga’s financial position has deteriorated substantially.
“But being an ad hoc payment rather than the proper cost pass-through mechanism that Tenaga needs, it leaves Tenaga vulnerable to future gas supply shocks.
We maintain HOLD and our target price of RM6.47, based on 1.1 times price-to-book value,” said CIMB Research.
It said on Friday that compensation for the gas shortage was good news as Tenaga’s financial position has deteriorated substantially.
“But being an ad hoc payment rather than the proper cost pass-through mechanism that Tenaga needs, it leaves Tenaga vulnerable to future gas supply shocks.
We maintain HOLD and our target price of RM6.47, based on 1.1 times price-to-book value,” said CIMB Research.
