Periodic/Sector reports

报告摘要

The government is protecting domestic users from tariff shocks by exempting household usage of up to 800kWh from the AFA surcharge until Dec 26. This neutral to TNB’s earnings as the government will compensate TNB for the exemption via the KWIE fund. The recent share price weakness may be due to rising regulatory receivables. In the past decade, the IBR framework has been upheld. We maintain BUY with a DCF-based target price of RM16.30.