Friday, October 29, 2010

AmResearch maintains Hold On Tenaga

KUALA LUMPUR: AmResearch reiterated its HOLD call on TENAGA NASIONAL BHD [] with an unchanged DCF-derived fair value of RM9 share after its FY10 core net profit came in right on the dot of its forecast but below 15% below street estimates.

'We have become less sanguine about Tenaga and have fine-tuned FY11F-FY12F earnings due to the US$10/tonne increase in coal cost assumption to US$100/tonne,' it said on Friday, Oct 29

AmResearch said however, that was largely offset by a revision to its exchange rate projection from RM3.10/US$1 to RM3.00/US$1. The stock currently trades at a fair FY11F PE of 14 times, which is Tenaga's three-year average.

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