Stock Name: TENAGA
Company Name: TENAGA NASIONAL BHD
Research House: MIMB



MIMB Investment Bank Bhd has revised downwards Tenaga Nasional Bhd's earnings forecast between seven per cent and 12 per cent for the 2011/2012 financial year.

It attributed the revision to fuel generation mix in view of higher coal requirements by the Jimah power plant in Port Dickson, the research bank said in a note today.

It also cut TNB's earnings per share by 12 per cent for the 2011 financial year after adjusting the generation mix on escalating coal usage.

"We see no price catalyst in the near-term. A re-rating will be in order when industry-wise reforms materialise," the investment bank said.

In the post earning revision, the research house has downgraded the target price for TNB to RM8.54 per share from RM9.24 per share previously.

Meanwhile, ECMLibra Investment Research is maintaining a buy on TNB at RM10.10 per share due to TNB's decent earnings growth.

"Coal prices are currently hovering at US$97 per tonne and historically, they tend to peak in September and October due to seasonally higher winter demand before tapering off," it said. - BERNAMA