The Tenaga Nasional Berhad (TNB) logo is seen on a building in Kuala Lumpur April 29, 2016. — Picture by Saw Siow FengKUALA LUMPUR, Jan 19 — CIMB Equities Research has maintained its target price of RM17.60 for Tenaga Nasional Bhd (TNB).
Basing this on a price-to-earnings ratio of 14 times for the 2019 financial year, it said in a statement carried by The Star that TNB should, at a minimum, match the industry average given its recent equity returns.
The firm is also keeping its Add call to the energy firm, saying it was confident TNB’s value was depressed by uncertainty over a review of tariffs under the Incentive-based Regulation (IBR).
“We believe this concern eased with the electricity base tariff rate revised up to 39.45 sen/kWh until 2020,” it said in the statement.