Tenaga Nasional Berhad, commonly known as TNB, is a Malaysian multinational utility company. Established in 1990, TNB has grown into the country's dominant power provider, generating, transmitting, and distributing electricity across Malaysia.
TNB plays a critical role in Malaysia's economic development and social well-being. The company boasts a diverse generation portfolio, including hydro, natural gas, solar, and biomass. They are committed to being a “leading provider of sustainable energy solutions in Malaysia and internationally.
TNB maintains a significant domestic presence and is actively exploring international expansion opportunities. The company is a leader in power generation technology and is committed to innovation to meet Malaysia's future energy needs.
Tenaga Nasional Berhad's shares are listed on the Bursa Malaysia Securities Berhad under the ticker code TNB.
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Tenaga Nasional EPS and Revenue Breakdown 2020-2023
| Source: TradingView | Annual EPS | Annual Revenue |
|---|---|---|
| 2020 | MYR 0.68 | MYR 43.98 billion |
| 2021 | MYR 0.81 | MYR 52.63 billion |
| 2022 | MYR 0.66 | MYR 73.18 billion |
| 2023 | MYR 0.53 | MYR 53.07 billion |
Comparison
Tenaga Nasional Share Price, Chart & Dividend Yield
Since October 2022, Tenaga shares have continued to rise and currently sit at levels last seen in October 2018 after a 58% increase over the last 12 months (as of July 2024). While the bullish momentum has persisted, some analysts still remain cautious (as you can see below).
Dividend Yield: 3.19%
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Tenaga Nasional Share Price Forecast
Data compiled by TradingView shows that out of 17 analysts covering Tenaga, 12 have a Buy rating on the stock, while five have assigned it a Hold rating. Here are the bull case and hold arguments for the stock:
The Bull Argument: RHB-OSK recently maintained a Buy rating on the stock, telling investors that after a site visit, it believes “Vantage RE (Vantage) will remain one of Tenaga Nasional’s major renewable energy (RE) key growth drivers internationally, while also strengthening its internal capabilities.” Overall, the firm's analysts say that Tenaga Nasional “should benefit from the continuous upgrade in transmission and distribution assets, where energy demand can be anchored by the mushrooming data centre development.”
The Neutral Argument: Taking a more cautious stance, maintaining a Hold rating, analysts at HLG highlighted that Tenaga Nasional's transmission and distribution segment is protected under the ICPT mechanism, where fuel costs are passed through every six months. “However, the power purchase agreement service level agreement will be affected by the short-term fluctuation of energy fuel cost variations due to the differential of coal inventory costs vs. the applicable coal fuel price,” they wrote.
Average Analyst Consensus 12-Month Price Target: MYR 12.41
Who Should Buy Tenaga Nasional Shares
Tenaga Nasional Berhad is seen as an attractive stock to many investors, but it is important to ensure that your investment goals align with the assets you are buying. Here are some investors that might find TNB shares attractive:
Income-Focused Investors Seeking Stability: TNB boasts a history of consistent dividend payouts, making it a potential option for investors seeking regular income streams. Combined with the company's dominant market position and role in Malaysia's critical infrastructure, this can be appealing for those prioritising stable returns.
Long-Term Investors with a Growth Outlook: While the electricity sector might not be known for explosive growth, TNB's focus on expanding its renewable energy portfolio and exploring international opportunities suggests potential for long-term value creation. Investors with a multi-year horizon might find TNB an attractive option for steady growth alongside their income stream.
Infrastructure and Utilities Investors: For investors who believe in the importance of diversifying their portfolios into utilities infrastructure, TNB could be a compelling choice. The company is a leader in power generation technology and plays a vital role in Malaysia's development. Owning TNB shares allows investors to participate in the future of Malaysia's energy sector.
Sustainability-Minded Investors: TNB's commitment to diversifying its generation portfolio with a focus on renewable energy like solar and hydro might appeal to environmentally conscious investors.
Value Investors Seeking Reliable Cash Flow: TNB's strong market position, established infrastructure, and consistent cash flow generation could be attractive to value investors.
