tag:blogger.com,1999:blog-16264003691028288592024-03-05T19:07:47.379+08:00Bursa Malaysia (KLSE) Daily Info Edge ZoneMalaysia Forex | KLSE Index | FTSE KLCI | Bursa Malaysia | MayBank Forex | Malaysia Stock Trading | Malaysia ShareUnknownnoreply@blogger.comBlogger2125tag:blogger.com,1999:blog-1626400369102828859.post-64655282616959706332011-05-31T12:38:00.003+08:002011-05-31T12:49:57.025+08:00Tenaga Nasional - More than just a tariff hike<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://3.bp.blogspot.com/-OkQ0jc24wRg/TeRyyz1hIdI/AAAAAAAAEMQ/BUk869H7_2E/s1600/tnb%2Bvs%2Bearth%2Bhour.jpg"><img style="float: left; margin: 0pt 10px 10px 0pt; cursor: pointer; width: 400px; height: 240px;" src="http://3.bp.blogspot.com/-OkQ0jc24wRg/TeRyyz1hIdI/AAAAAAAAEMQ/BUk869H7_2E/s400/tnb%2Bvs%2Bearth%2Bhour.jpg" alt="" id="BLOGGER_PHOTO_ID_5612737252844184018" border="0" /></a><br /><span style="font-weight: bold;"><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br />7% average tariff hike sooner-than-expected. </span><br />TNB has finally received approval for the tariff hike effective 1 June 2011. The 7.2% hike beat our 2-3% expectation, and came sooner-than-expected - the market had expected it to come through after the general election. Industrial and commercial users will be slapped with an average 8.3% hike in tariff, while 75% of households will not be affected.<br /><br /><span style="font-weight: bold;">Tariff hike more than offset gas price increase. </span><br />Cost of subsidised gas to the power sector will increase by 28% to RM13.70/mmbtu, but TNB will still see a positive RM600m p.a. net impact after the tariff hike. The higher gas cost will<br />be offset by a 5.1% tariff increase, and base tariff will be raised by another 2% to account for higher CPI and generation cost. More importantly, TNB has received cabinet approval for the fuel cost pass-through mechanism. The mechanism allows for a tariff review every six months that will enable TNB to pass-through increases in gas (upfront) and coal (with 6 month lag) costs. We raised FY11-13F net profit by 6%, 22% and 18%, respectively, after factoring in the change in tariff rates.<br /><br /><span style="font-weight: bold;">Fuel cost pass-through is a key re-rating catalyst. </span><br />TNB is not just a one-off tariff hike story. We expect strong re-rating of the stock as the tariff hike has again proven that TNB will receive relief from rising fuel prices. The key re-rating<br />catalyst will come from greater clarity and certainty in terms of the timing and mechanism of future tariff adjustments. Maintain Buy, but with a higher target price of RM8.80 pegged to 14x CY12 PE. TNB is also a market laggard and under-owned big-cap in Malaysia with good leverage to stronger GDP growth and Ringgit.<br /><br />Report from HWangDBSUnknownnoreply@blogger.com0tag:blogger.com,1999:blog-1626400369102828859.post-48206351600103904322009-01-20T14:05:00.005+08:002009-01-20T14:27:04.664+08:00Kuala Terengganu Loss And TNB LossBefore the election on Kuala Terangganu, a news about <span class="jc_comment_title">announcing a possible cut in electricity tariff may happen and TNB announed also about the review at mid Feb 2009. What happen now? </span>For the period ending Nov 2008, it announced a net loss after tax of RM944.1 million, the largest in over four years, increasing from RM282.9 million in the last quarter.<br /><br />Before announced out the report sure TNB highest management know the report is ugly. I think government also know, but still announcing some factitious hope to get vote for BN.<br /><br />What will happen if BN win KT? Will TNB announed a big loss? What I know is during KT election campaing BN use out around 3Billion! Now the money is loss and also the election, so need to get back the money by announcing loss on privatization company.<br /><br />I'm just hard to understand that how TNB businness can loss RM944.1 million.Unknownnoreply@blogger.com1