AmResearch : maintains "BUY" on Tenaga

AmResearch says Tenaga is currently trading at an attractive CY10F PE of 11 times vis-à-vis its five-year average of 14 times.

It said on Monday, July 12 that it reiterated its BUY call with an unchanged DCF-based fair value of RM10 per share.

The factors are (1) Resurgence in power consumption growth; (2) Appreciating Ringgit; (3) Improving economies of scale with declining power reserve margin - currently at 45%; 4) Potential corporate moves such as bonus or increasing dividend payout; and (5) Return of foreign investors to one of the most liquid stocks on Bursa Malaysia.


Written by AmResearch