KUALA LUMPUR: OSK Research has raised its target price for PBA HOLDINGS BHD [] to RM1.48 from RM1.23 and maintains a Buy on the stock.
Effective Nov 1, PBA will raise its water tariff rates chargeable to trade consumers higher by a flat 27%.
'As this will certainly bolster its financial performance for next year and going forward, we raise our earnings estimates for PBA and hence its target price as well,' it said in a research note on Monday, Oct 4.
The tariff hike is a flat increase in trade consumers' water tariff rates by as much as 27%. For the first 20,000 litres of water consumption, rates have been upped to 66 sen per 1,000 litres from 52 sen per 1,000 litres previously.
For the consumption band of 20,000 litres to 40,000 litres and 40,001 to 200,000 litres, rates are also upped by a similar quantum to 89 sen per 1,000 litre and RM1.15 per litre respectively.
'Post increase, the Penang state water tariff rates will be the second lowest in Peninsular Malaysia at RM1.19 per 1,000 litres for the first 500,000 litres of water used from 94 sen previously. The Peninsular Malaysian average is at RM1.58,' it said.
Effective Nov 1, PBA will raise its water tariff rates chargeable to trade consumers higher by a flat 27%.
'As this will certainly bolster its financial performance for next year and going forward, we raise our earnings estimates for PBA and hence its target price as well,' it said in a research note on Monday, Oct 4.
The tariff hike is a flat increase in trade consumers' water tariff rates by as much as 27%. For the first 20,000 litres of water consumption, rates have been upped to 66 sen per 1,000 litres from 52 sen per 1,000 litres previously.
For the consumption band of 20,000 litres to 40,000 litres and 40,001 to 200,000 litres, rates are also upped by a similar quantum to 89 sen per 1,000 litre and RM1.15 per litre respectively.
'Post increase, the Penang state water tariff rates will be the second lowest in Peninsular Malaysia at RM1.19 per 1,000 litres for the first 500,000 litres of water used from 94 sen previously. The Peninsular Malaysian average is at RM1.58,' it said.
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