CIMB Research: Power sector remains Overweight, Gas M’sia top pick

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KUALA LUMPUR (March 13): CIMB Research has maintained its Overweight rating on the Malaysian power sector with catalysts anticipated from ETP-backed electricity demand and power-plant tenders.
In a note March 12, the research house said all major power generators had made pre-qualification submissions for a 2GW greenfield coal power plant.
“They include 1MDB, Tenaga, Malakoff and YTL. A bid by Automan Energy was a surprise as news reports once hinted of an exit by the Negri Sembilan royal family.
“Our top pick remains Gas Malaysia for its defensive earnings, debt-free balance sheet and strong cash flows,” it said.