PETALING JAYA: Tenaga Nasional Bhd
(TNB) could see a slight dent to its earnings for the financial year ending Dec 31,2020, due to the offering of staggered discounts for electricity consumption in the country.
According to CGS-CIMB Research, the energy giant’s net profit could be impacted by about 2% due to the RM150mil set aside for the initiative, as part of its corporate social responsibility (CSR).
As such, the research firm cut its estimates for TNB’s earnings per share for the financial years 2020-2022 by 0.4%-2.1% to factor in the additional CSR expenses.
It, however, reiterated its “add” recommendation on TNB, with an unchanged target price of RM14.30 based on sector average valuation of 15 times estimated 2021 earnings.
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