KUALA LUMPUR (Nov 3): Tenaga Nasional Bhd rose as much as 24 sen or 2% to RM13.60 after the state-controlled utility reported a 21% rise in net profit for financial year ended August 31, 2014 (FY14).
Tenaga's proposed dividend and analysts' upgrades had also supported the stock.
Shares of Tenaga had later reduced gains as investors took profit. At 11:44am, the stock retreated to RM13.50 with 2.43 million shares traded.
The stock had risen by 17.4% year-to-date, outperforming the FBM KLCI's 0.7% decline.
Last week, Tenaga reported a net profit of RM6.47 billion for FY14 from RM5.36 billion a year earlier.
Tenaga also proposed a dividend of 19 sen a share in 4QFY14, bringing total dividends in FY14 to 29 sen a share.
Kenanga Investment Bank Bhd wrote in a note to clients today that the research firm had raised its target price for Tenaga shares to RM14.65 from RM13.77 previously.
Kenanga maintained its "outperform" call for Tenaga.
“As we expect a tariff hike in this coming review, we decided to upgrade our targeted calendar year 2015 price-earnings ratio slightly to 15x from 14.3x (5-year average) which we believe is not excessive given its sustainable earnings growth with index-linked heavyweight status while the market is currently trading at 17x multiple,” Kenanga said.