Tenaga closed its first RE deal of 2022, thus making further progress with its renewable push (8,300MW by 2025). Nevertheless, soaring coal prices means concerns over the ICPT mechanism will continue to take centre stage. Maintain HOLD with an unchanged MYR9.30 TP (DCF-based). We prefer Mega First (MFCB MK, BUY, CP: MYR3.71, TP: MYR4.30) and YTL Power (YTLP MK, BUY, CP: MYR0.675, TP: MYR0.90) in the Utilities space.
KE: Tenaga Nasional – HOLD TP RM9.30
