Electricity tariffs are unchanged into 2022. The unexpected delay to the implementations of both RP3 (2022-2024) and the ICPT (pass-through) mechanism inevitably raises regulatory concerns for Tenaga. Downgrade to HOLD with a lower MYR9.60 TP (DCF-based) as we price in concerns over elevated regulatory risks. We prefer Mega First (MFCB MK, BUY, CP: MYR3.50, TP: MYR4.30) in the utilities space.