MALAYSIA’s energy transition, rising electricity demand and the rapid expansion of data centres (DC) continue to create new investment opportunities, keeping utilities as a compelling sector for investors seeking stable earnings and long-term growth.
While higher fuel costs and execution risks remain factors to watch, research houses generally see regulated earnings, recurring cash flows and an expanding renewable energy (RE) pipeline providing a very supportive backdrop for the sector.
UOB Kay Hian (UOBKH) Research, Hong Leong Investment Bank (HLIB) Research, Kenanga Research, BIMB Research and CIMB Research all continue to favour selective exposure to utilities, although their preferred stocks differ.
Among the five brokerages, Tenaga Nasional Bhd
(TNB) emerges as the clear consensus favourite.
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