Tenaga Nasional: Limited Impact from Targeted Relief

Tenaga Nasional’s (TNB) tariff briefing clarified that the group will absorb RM120–150m following the temporary increase in the domestic customer protection threshold from 600kWh to 800kWh per month for September–December 2026.

“We view the earnings impact as limited, as the incremental relief covers only domestic customers consuming above 600kWh and up to 800kWh monthly, while management’s estimate incorporates conservative fuel cost assumptions,” says analysts from Public Investment.

Tenaga Nasional

Assuming a 24% tax rate, the absorption translates into RM91.2–114m after tax, equivalent to 2.1–2.6% of our FY26F net profit forecast of RM4.40bn. Actual absorption could be lower if fuel costs ease below management’s assumptions.

Management also reaffirmed that the Automatic Fuel Adjustment (AFA) framework, regulated returns and dividend policy remain intact. “While an extension of support remains a risk, we consider it manageable given the targeted scope and limited earnings exposure. We maintain our earnings forecasts and retain our Outperform call with an unchanged TP of RM16.00.”

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