TNB shares fall to RM14.16 after tariff update; analysts maintain ‘Buy' amid grid upgrade push
KUALA LUMPUR, June 23 — Tenaga Nasional Bhd shares trended lower in early trade today after the Regulatory Period 4 (RP4) tariff schedule revision announcement under the incentive-based regulation (IBR) framework effective July 1, 2025.
At 10.10 am, TNB's share fell six sen to RM14.16 per share with 177,300 shares traded.
The trading of the national utilities company's shares was halted for one hour at opening today and resumed at 10 am, said the company in a Bursa Malaysia filing today.
The Energy Commission had previously announced a new average base electricity tariff of 45.4 sen/kWh, effective July 1, 2025 to Dec 31, 2027 under the RP4.
TNB had said implementing the revised electricity tariff in Peninsular Malaysia is positive for the company vis-a-vis the National Energy Transition Roadmap; that the company is committed to ensuring a reliable and continuous electricity supply throughout Peninsular Malaysia.
Meanwhile, Hong Leong Investment Bank Bhd (HLIB) in a note said TNB would benefit from the higher regulated asset base starting from 2025 under the new RP4-5 (2025-2030), given the urgent requirement to upgrade the grid for energy transition and to support data centre growth and renewable energy developments.
It has a 'Buy' call with an unchanged target price of RM16.20.
Meanwhile, CIMB Securities said the impact is likely to be neutral for TNB.
'Regardless of tariff changes, the incentive-based regulation framework provides regulatory adjustments such that TNB ultimately earns the regulatory rate of return on the regulated asset base,' it said.
The investment bank maintains its 'Buy' call for TNB with key downside risks including higher-than-expected operating costs, unscheduled power station outages, and lower-than-expected spending on RP4 contingent capital expenditure.
'Under RP4, the RAB is expected to grow healthily, led by a 12 per cent higher base capex of RM26.6 billion and contingent capex of RM16.3 billion,' it added. — Bernama
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