KUALA LUMPUR: Shares of TENAGA NASIONAL BHD [] surged on resuming trade on Tuesday, May 31 after the utility company officially received the nod to increase tariff rates effective June 1.
At 9.05am, Tenaga was up 51 sen to RM7.03 with 5.19 million shares traded.
HwangDBS Vickers Research has maintained its buy call on Tenaga Nasional Bhd and raised its target price to RM8.80 from RM7.50 previously.
In a note Tuesday, May 31, HwangDBS Vickers said the 7% average tariff hike was more than sufficient to offset the 28% increase in gas price.
'Future hike in fuel cost will be passed-through to users under the 6-monthly tariff review
'Approval of cost pass-through mechanism will be a key re-rating catalyst; maintain Buy with higher TP of RM8.80 implying 35% upside,' it said.
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At 9.05am, Tenaga was up 51 sen to RM7.03 with 5.19 million shares traded.
HwangDBS Vickers Research has maintained its buy call on Tenaga Nasional Bhd and raised its target price to RM8.80 from RM7.50 previously.
In a note Tuesday, May 31, HwangDBS Vickers said the 7% average tariff hike was more than sufficient to offset the 28% increase in gas price.
'Future hike in fuel cost will be passed-through to users under the 6-monthly tariff review
'Approval of cost pass-through mechanism will be a key re-rating catalyst; maintain Buy with higher TP of RM8.80 implying 35% upside,' it said.
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