TNB Shares Down In Early Session Despite Posting Stronger 3Q Net Profit

KUALA LUMPUR, Dec 2 (Bernama) -- Tenaga Nasional Bhd’s (TNB) share prices on Bursa Malaysia slipped in today’s early session despite posting a stronger performance in the third quarter (3Q) of financial year 2024.

At 10.30 am, the counter was 10 sen weaker at RM13.56 with 937,600 shares traded.

It was reported that TNB’s net profit almost doubled to RM1.58 billion in 3Q 2024 from RM856.20 million in the same quarter last year, thanks to gains in foreign exchange translation, higher electricity sales and improved operational performance.

Its revenue also rose to RM14.35 billion in 3Q 2024 from RM13.47 billion previously.

CIMB Securities Sdn Bhd said it stayed positive on TNB after its 3Q 2024 briefing, given that the electricity demand growth is expected to be strong in the financial year 2024-2026.

“This (electricity demand) was driven by new data centres coming onstream, which could potentially raise the allowed annual revenue under Regulatory Period 4.

“The high other operating cost in 3Q 2024 may have been intermittent and could taper off in the 4Q 2024,” it said in a research note today.

CIMB Securities said it slashed its financial year 2024, 2025 and 2026 core earnings per share by 15 per cent, 15 per cent, and 11 per cent, respectively, to factor in higher operating costs and a more progressive rise in National Energy Transition Roadmap-related capital expenditure.

It maintained a “buy” call on TNB with a six per cent lower discounted cash flow-derived-based target price of RM15.80.

-- BERNAMA