KUALA LUMPUR: RHB Research believes industry reforms in the power sector could potentially take a backseat this year amid an exceptionally volatile political landscape and the possibility of general elections being held sooner than expected.
It said on Tuesday, April 5 that therefore, TENAGA NASIONAL BHD [] lacks catalysts going forward.
'Management's guidance of average FY11 coal prices is currently US$110/MT, but this may be revised higher upon the release of its 2QFY11 results, as demand for non-nuclear fuel surge due to Japan's nuclear crisis,' it said.
RHB Research said with the Sarawak elections around the corner, it believes political consideration will take precedence when it comes to a tariff review for TNB.
'Without management's assurance regarding future dividends, we believe YTL Power may lose a bit of shine since the key investment thesis for the stock has historically been high dividend yields,' it said.
The research house after more than two years of discussions and five formal offers, the restructuring of the water sector in Selangor is expected to remain in a deadlock situation.
'We maintain our Underweight stance on the sector due to lack of catalysts,' it said.
It said on Tuesday, April 5 that therefore, TENAGA NASIONAL BHD [] lacks catalysts going forward.
'Management's guidance of average FY11 coal prices is currently US$110/MT, but this may be revised higher upon the release of its 2QFY11 results, as demand for non-nuclear fuel surge due to Japan's nuclear crisis,' it said.
RHB Research said with the Sarawak elections around the corner, it believes political consideration will take precedence when it comes to a tariff review for TNB.
'Without management's assurance regarding future dividends, we believe YTL Power may lose a bit of shine since the key investment thesis for the stock has historically been high dividend yields,' it said.
The research house after more than two years of discussions and five formal offers, the restructuring of the water sector in Selangor is expected to remain in a deadlock situation.
'We maintain our Underweight stance on the sector due to lack of catalysts,' it said.
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