KUALA LUMPUR (Jan 16): RHB Research sees slight improvement in TENAGA NASIONAL BHD []’s performance in the first quarter of FY2012.
It said on Monday that continued gas shortage will likely result in another loss for TNB in 1QFY12, but slightly lower than 4QFY11.
RHB Research said that gas supplied improved marginally, but was still below 1,000 mmscfd in 1Q.
“Even if fuel cost sharing mechanism is applied post Oct 2011 (assuming gas supply normalises only in FY13), our scenario analysis suggests a proforma fair value of only RM6.90. There is still upside to TNB, albeit limited.
“Due to share price rally, we downgrade our call to Market Perform. Maintain fair value of RM6.15,” it said.
It said on Monday that continued gas shortage will likely result in another loss for TNB in 1QFY12, but slightly lower than 4QFY11.
RHB Research said that gas supplied improved marginally, but was still below 1,000 mmscfd in 1Q.
“Even if fuel cost sharing mechanism is applied post Oct 2011 (assuming gas supply normalises only in FY13), our scenario analysis suggests a proforma fair value of only RM6.90. There is still upside to TNB, albeit limited.
“Due to share price rally, we downgrade our call to Market Perform. Maintain fair value of RM6.15,” it said.
