Wednesday 11 January 2012

Tenaga advances, AmResearch maintains buy, FV RM6.57

KUALA LUMPUR (Jan 11): Shares of TENAGA NASIONAL BHD [] rose to a high of RM6.19 on Wednesday as analysts expected lower losses in the first quarter of its financial year.

At 11.30am, it was up six sen to RM6.13. There were 4.02 million shares done at prices ranging from RM6.12 to RM6.19.

AmResearch maintained its Buy on the power giant, with an unchanged discounted cashflow-derived fair value of RM6.57 a share, which implied a CY12F PE of 12 times and a price-to-book value of 1.2 times.

“We maintain FY12F-FY14F earnings which incorporate the one-off RM2 billion fuel relief provided for the natural gas shortage and assumption of normalised fuel costs,” it said.

AmResearch said it expected further losses in the 1QFY12 results, which will be announced on Jan 17, 2012, due to high oil and distillate costs arising from the persistent natural gas shortage.

“But 1QFY12 loss would likely be lower than the RM454 million incurred in 4QFY11 given lower alternative fuel costs amid slightly improved natural gas supply during the flat on-quarter seasonal electricity consumption,” it said.



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