Crosswinds ahead

Weighing on near-term sentiment
Peninsular Malaysia generation has unsurprisingly fallen further since the imposition of the EMCO in large parts of the Klang Valley. Consequently, concerns over bad debts and the sufficiency of the Industry Fund have emerged, which could weigh on sentiment. Nevertheless, we believe Tenaga’s full-year earnings are unlikely to be materially impacted. Maintain BUY with an unchanged MYR12.00 TP (DCF-based).