TNB makes largest strides in renewable energy among Malaysian electricity producers — TA Securities

TNB makes largest strides in renewable energy among Malaysian electricity producers — TA Securities

14 Jul 2021

Tenaga Nasional Bhd (TNB) is reported to have made the largest strides in renewable energy (RE) among Malaysian electricity producers on the back of the government-controlled TNB’s aggressive green ambitions, according to TA Securities Holdings Bhd today.

In a report today, TA Securities analyst Kylie Chan Sze Zan wrote that time is, nevertheless, on the side of fossil-fuel-based power producers, as it is still early days for RE proliferation. 

“Therefore, we opine that TNB’s proactive RE goals and swift execution to-date are commendable,” Chan said. 

Malaysian power producers include Malakoff Corp Bhd and YTL Power International Bhd.

Chan said Malakoff has also kickstarted efforts to diversify into RE via various smallish projects. 

On YTL Power, she said TA Securities believes “the group needs to ramp up efforts by finally venturing into the RE space”.

“We maintain ‘overweight’ on the power & utilities (P&U) sector as P&U companies remain attractive before and after the Covid-19 pandemic,” Chan said.

She said the P&U sector’s fixed earnings offer refuge from lingering Covid-19-related headwinds.

“As such, this all-weather play offers both peace-of-mind and earnings growth,” she said.

Chan said TA Securities has “buy” calls on TNB, Malakoff and YTL Power shares.

According to her, TA Securities’ target price (TP) for TNB stood at RM11.50 while TPs for Malakoff and YTL Power were 97 sen and 85 sen respectively.

At Bursa Malaysia’s 12:30pm break today, TNB’s share price settled up one sen or 0.1% at RM9.67 while Malakoff rose 0.5 sen or 0.61% to 82 sen.

YTL Power’s share price settled unchanged at 69 sen.

Source: The Edge Markets