PETALING JAYA: The upcoming implementation of third-party access (TPA) framework is not expected to be a threat to the country’s sole electricity provider, Tenaga Nasional Bhd (TNB), says RHB Research. RHB Research noted this is because TNB will still own the infrastructure and may have to incur capital expenditure (capex) to upgrade it. RHB Research maintained a “buy” call on TNB with a target price of RM16.10 a share. The research house believes TNB should continue to benefit from the continuous upgrades of its T&D assets, with energy demand supported by the mushrooming development of data centres. It also noted that TNB’s valuations have run ahead of fundamentals at this juncture and that any weaker-than-expected capex in the upcoming RP4 determination is a valuation de-rating risk.

Source: The Star June 05, 2024 10:42 UTC