Tenaga share price hit record high ahead of quarterly result



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KUALA LUMPUR (Oct 31): Tenaga Nasional Bhd (TNB) has climbed steadily to record high of RM13.30 ahead of the release of its quarterly financial result today amid expectation of the falling coal prices would trim the utility giant's fuel costs.
Tenaga share price has gained over 8% since the start of the month.
At 11.30 am, Tenaga gains 18 sen or 1.4% to RM13.28, with some 1.95 million shares changing hands.
In a results preview report dated Oct 27, Maybank IB Research analyst Tan Chi Wei said that it estimated Tenaga’s core net profit at about RM1.5 billion, 29% of the research house FY14 forecast.
“This would take FY14 core net profit to RM5.45 billion, 5% higher than our forecast,” said Tan. The research house is maintaining a “buy” rating on Tenaga with a higher target price of RM14.

A fund manager noted that given the current low fuel costs, Tenaga could have the earning power of making RM7 billion annual net profit.

Nonetheless, there is concern that the utility group may incur some provisions taking advantage of the improved earnings, said the fund manager.