TNB Shares Rise On New Tariff Framework
KUALA LUMPUR, Sept 23 (Bernama) -- Tenaga Nasional Bhd (TNB) shares rose in early trading on Wednesday after the utility announced its latest tariff framework.
At 10.28 am, TNB shares were up 14 sen, or 1.1 per cent, at RM13.24, with 1.31 million shares traded.
On Sept 18, Malaysia’s primary electricity provider said it would provide RM120 million to RM150 million in support for electricity bill protection from September to December 2026.
In a research note, MBSB Investment Bank Bhd said the latest tariff framework under Regulatory Period 4 (RP4) provides greater stability and transparency, particularly through the dynamic Automatic Fuel Adjustment (AFA) mechanism.
The mechanism removes the lag in fuel cost recovery and protects TNB from fluctuations in fuel prices, it said.
“Electricity demand is also expected to remain strong moving forward, with growth of 5.4 per cent expected in calendar year 2026,” MBSB Investment Bank said.
The investment bank maintained its “buy” recommendation on TNB and an unchanged discounted cash flow (DCF)-derived target price of RM16.31.
Public Investment Bank Bhd also maintained its earnings forecasts and “outperform” recommendation on TNB, with an unchanged target price of RM16.00.
-- BERNAMA