Sunday 29 August 2010

OSK Research maintains Buy on Tenaga, FV RM9.90

OSK Research maintains Buy on Tenaga, FV RM9.90

Written by OSK Research
Wednesday, 25 August 2010 08:45


KUALA LUMPUR: OSK Research is keeping its earnings forecast for TENAGA NASIONAL BHD [] intact and maintains its Buy call on the power giant and its discounted cashflow fair value of RM9.90

The research house said on Wednesday, Aug 25 that with the ringgit strengthening to RM3.13 versus the US dollar and Australian coal prices falling back to US$86 per tonne from a recent high of US$108 per tonne, there has been some buying interest on TNB.

“Nonetheless, given the volatility of coal prices, we are keeping our effective cost of coal for FY11 and beyond unchanged at US$98 per tonne. With our earnings intact, we maintain our Buy call on Tenaga and our DCF fair value of RM9.90,” it said.

Tenaga announced on Tuesday it has received a letter of offer from the Energy Commission (EC) to develop the 1x1000MW coal fired power plant on Tenaga’s existing power plant site in Manjung, Perak.

The plant is expected to have its commercial operation date on March 1, 2015 and still has to secure approvals for its environmental impact assessment, power purchase agreement and bidding selection for the engineering, procurement and commissioning contractor.

http://www.theedgemalaysia.com/business-news/172439-osk-research-maintains-buy-on-tenaga-fv-rm990.html

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