KUALA LUMPUR: Tenaga Nasional Bhd’s (TNB) share prices on Bursa Malaysia slipped in today’s early session despite posting a stronger performance in the third quarter (3Q) of financial year 2024. At 10.30 am, the counter was 10 sen weaker at RM13.56 with 937,600 shares traded.

According to BERNAMA News Agency, TNB’s net profit almost doubled to RM1.58 billion in 3Q 2024 from RM856.20 million in the same quarter last year, thanks to gains in foreign exchange translation, higher electricity sales and improved operational performance. Its revenue also rose to RM14.35 billion in 3Q 2024 from RM13.47 billion previously.

CIMB Securities Sdn Bhd commented positively on TNB following its 3Q 2024 briefing, noting that electricity demand growth is expected to be robust in the financial years 2024-2026. This demand growth is attributed to new data centres coming onstream, which could potentially raise the allowed annual revenue under Regulatory Period 4. Despite high other operating costs in 3Q 2024, CIMB Securities su
ggested these might be temporary and could decrease in the 4Q 2024.

CIMB Securities also adjusted its financial year 2024, 2025 and 2026 core earnings per share estimates, reducing them by 15 per cent, 15 per cent, and 11 per cent, respectively, to account for higher operating costs and a more gradual increase in National Energy Transition Roadmap-related capital expenditure. Nevertheless, it maintained a ‘buy’ call on TNB with a six per cent lower discounted cash flow-derived-based target price of RM15.80.