KUALA LUMPUR (Jan 18): MIDF Research has maintained its Buy rating on TENAGA NASIONAL BHD [] and target price of RM6.70 based on DCF using WACC of 8.8%.
In a note Wednesday, the research house said it was looking forward to a better 2H12 for Tenaga, with the Melaka regasification plant taking off in Jul’12.
“Another key rerating catalyst is the next tariff review, which is scheduled semiannually (but we expect to be postponed after the General Election), which should see the fuel cost pass through mechanism kicked in.
“We reiterate our Buy recommendation although the expected total return now is at 10.3% (which is below than 15% Buy definition).
In a note Wednesday, the research house said it was looking forward to a better 2H12 for Tenaga, with the Melaka regasification plant taking off in Jul’12.
“Another key rerating catalyst is the next tariff review, which is scheduled semiannually (but we expect to be postponed after the General Election), which should see the fuel cost pass through mechanism kicked in.
“We reiterate our Buy recommendation although the expected total return now is at 10.3% (which is below than 15% Buy definition).
