Kenanga Research raised its target price on Tenaga Nasional Bhd to 8.05 ringgit from 7.90 ringgit after Malaysia’s largest energy provider posted a full-year net profit of 3.35 billion ringgit in line with market estimates.
The brokerage maintained its ‘outperform’ call on the stock.
Costs for the financial year ended Aug. 31 were contained with higher coal usage and gas supply, said Kenanga in a report on Thursday.
Kenanga added that the downside risk to Tenaga is limited after assurance from the government that compensations for fuel costs will continue, as asserted by the company this week.
Discounting the compensation of 1.48 billion ringgit for the full year, net profit rose 34.2 percent to 2.9 billion ringgit from 2.2 billion ringgit.
Shares of the company rose 0.72 percent to 7 ringgit. 0928 (0128 GMT) (Reporting by Al-Zaquan Amer Hamzah in Kuala Lumpur; Editing by Anand Basu; email@example.com)