RHB IB Maintains Overweight On Energy Sector As Govt Accelerates CRESS
KUALA LUMPUR, Sept 22 (Bernama) -- RHB Investment Bank Bhd (RHB IB) maintained its “overweight” call on the energy sector, following the government’s decision to accelerate the adoption of the Corporate Renewable Energy Supply Scheme (CRESS).
In a note, the investment bank said the Energy Transition and Water Transformation Ministry (PETRA) lowered the system access charge to 14 sen per kilowatt-hour to improve project bankability and streamline the approval process.
On September 18, PETRA announced several enhancements to strengthen the implementation of CRESS, aimed at improving the programme’s viability, providing greater certainty to industry players and accelerating the development of new renewable energy capacity in the national electricity system.
RHB IB said its sector picks included YTL Power International Bhd, Tenaga Nasional Bhd, Samaiden Group Bhd and Solarvest Holdings Bhd.
YTL Power is expected to benefit from rising data centre capacity, while Tenaga Nasional is seen as a key beneficiary of the National Energy Transition Roadmap, supported by its regulated framework and stable earnings base.
The bank said it retained its base-case estimate of 300-500 megawatts (MW) in CRESS project awards for Solarvest by end-2026, while rolling forward its valuation base year to financial year 2028 forecast to derive a new target price of RM4.30 from RM3.64 previously.
It also raised its target price for Samaiden to RM3.00, incorporating a 100 MW order book replenishment assumption from CRESS projects, with a 50 per cent battery ratio.
“Supported by a RM3.5 billion tender book, of which 70 per cent comprises CRESS projects, further job wins could provide upside potential to our new RM3.00 target price,” it said.
As at 10.30 am, YTL Power’s share price rose two sen to RM2.38 with 5.94 million shares traded and Tenaga Nasional’s share price gained eight sen to RM13.12, with 1.46 million shares traded.
Meanwhile, Samaiden’s share price fell eight sen to RM2.30 with 739,000 shares traded, while Solarvest’s share price declined three sen to RM3.66, with 1.06 million shares traded.
-- BERNAMA