Latest news with #RM15.75
BusinessToday
6 days ago
- Business
- BusinessToday
Govt Says TNB's Profit Margin Regulated At 7.3% Till 2027
The profit rate for Tenaga Nasional Bhd (TNB) is regulated by the government, with TNB's permitted profit margin maintained at 7.3 per cent during the fourth regulatory period (RP4) from 2025 to 2027. Deputy Energy Transition and Water Transformation Minister Akmal Nasrullah Mohd Nasir said TNB's profit rate remains at 7.3 per cent in RP4, similar to the rate set during the second regulatory period in 2018. 'If TNB profits exceed the regulated rate, the excess will be returned to consumers through the Electricity Industry Fund,' he said. He was responding to a question from Lim Guan Eng (Harapan-Bagan) on TNB's annual profits and the additional gains earned following the 14.2 per cent tariff rise for the commercial sector on July 1. Lim also asked whether the tariff hike could be postponed or staggered, given that TNB's profits rose by over 70 per cent last year. Akmal Nasrullah said the 7.3 per cent profit rate is reasonable in light of TNB's investments to upgrade and strengthen the national grid, especially to support the Asean Power Grid, the construction and maintenance of power plants, the installation of smart meters, and the digitalisation of the energy system. He added that this set profit rate is a balanced approach to ensure TNB remains stable as a utility company capable of providing better consumer services. 'It also ensures a reasonable return to TNB's major shareholders, which include government investment entities such as Khazanah Nasional Bhd, the Retirement Fund (KWAP), and the Employees Provident Fund (EPF). TNB paid RM15.75 billion in dividends between 2018 and 2023,' added Akmal Nasrullah.
The Star
6 days ago
- Business
- The Star
TNB profit rate regulated by the govt, maintained at 7.3%
KUALA LUMPUR: The profit rate for Tenaga Nasional Bhd (TNB) is regulated by the government, with TNB's permitted profit margin maintained at 7.3 per cent during the fourth regulatory period (RP4) from 2025 to 2027. Deputy Energy Transition and Water Transformation Minister Akmal Nasrullah Mohd Nasir said TNB's profit rate remains at 7.3 per cent in RP4, similar to the rate set during the second regulatory period in 2018. "If TNB profits exceed the regulated rate, the excess will be returned to consumers through the Electricity Industry Fund," he said. He was responding to a question from Lim Guan Eng (PH-Bagan) on TNB's annual profits and the additional gains earned following the 14.2 per cent tariff rise for the commercial sector on July 1. Lim also asked whether the tariff hike could be postponed or staggered, given that TNB's profits rose by over 70 per cent in 2024. Akmal Nasrullah further said the 7.3 per cent profit rate is reasonable in light of TNB's investments to upgrade and strengthen the national grid, particularly to support the ASEAN Power Grid initiative, the construction and maintenance of power plants, the installation of smart meters, and the digitalisation of the energy system. According to him, setting this profit rate is a balanced approach to ensure TNB remains stable as a utility company capable of providing better consumer services. "At the same time, it ensures a reasonable return to TNB's major shareholders, which include government investment entities such as Khazanah Nasional Bhd, the Retirement Fund (KWAP), and the Employees Provident Fund. TNB paid RM15.75 billion in dividends between 2018 and 2023," said Akmal Nasrullah. - Bernama Trading ideas: MGB, YTL Power, Classita, Infomina, NationGate, Thong Guan, Carlsberg, Sunway REIT, UMS, MSC, Tex Cycle, Rhone Ma
BusinessToday
29-07-2025
- Business
- BusinessToday
CIMB Backs TNB Despite RM5.8 Billion Tax Overhang
CIMB Investment Bank Bhd (CIMB Securities) has maintained its BUY rating on Tenaga Nasional Bhd (TNB) with an unchanged target price of RM15.75, even as the utility giant faces a new tax challenge after receiving a Notice of Additional Assessment for 2022 amounting to RM840.1 million from the Inland Revenue Board (IRB). The research house said this latest assessment brings the total cumulative amount from notices issued for 2013–2021 to RM5.89 billion. It added that there remains a risk the IRB could issue further assessments for 2023 and 2024, which may push the total closer to RM8 billion based on capital expenditure trends. TNB is currently assessing its legal options in response to the notice, taking into account its pending application for Investment Allowance (IA) under Schedule 7B of the Income Tax Act 1967 submitted to the Ministry of Finance. CIMB Securities highlighted that this follows the Federal Court's recent decision to overturn earlier rulings in TNB's favour regarding a similar assessment for 2018, concluding that the correct tax schedule applicable is Schedule 7B rather than Schedule 7A. CIMB Securities noted that in the worst-case scenario where TNB pays the full amount, including possible future assessments, the impact on its discounted cash flow-based target price could be as high as RM1.30 to RM1.40 per share, or 8–9%. However, this impact would be smaller or even negligible if the group's IA claims are approved. Despite the tax uncertainty, the house maintained its positive stance on TNB, citing its reasonable valuation at 7.0 times forecast FY2026 enterprise value-to-EBITDA and dividend yields projected between 3.3% and 4.0% for FY2025 to FY2027. The brokerage expects the company's earnings to remain resilient, underpinned by regulated returns and stable operational cash flows. As of July 28, TNB shares traded at RM13.60. Related
