KUALA LUMPUR (Feb 12): Shares of Tenaga Nasional bhd fell in active trade on Thursday, continuing to be battered after a tariff reduction was announced a day earlier.
At 10.23am, Tenaga (fundamental: 1.30; Valuation: 1.80) lost 5.42% or 78 sen to RM13.62 with 23.52 million shares traded.
The stock was also the top loser across the exchange.
RHH Research has maintained its “Buy” rating on Tenaga with a lower target price of RM16.70 (from RM18.60) and said the reduced power tariffs for four months would erode Tenaga’s topline and profit before tax by RM815 million each, based on house estimates.
“While the latest development is negative to Tenaga, we believe the RM2.6 billion loss in Tenaga’s market value yesterday would have substantially reflected the bad news,” it said.
(Note: The Edge Research’s fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations. Go towww.theedgemarkets.com for more details on a company’s financial dashboard.