CIMB Research sees more dividends from TNB, YTL, other power firms

PETALING JAYA: The lack of new incoming projects in the utilities sector might turn out to be for the better, as it could lead to companies giving out more dividends or allowing for those with higher gearing to repair their financial position.

CIMB Research believes that the absence of new projects could lead to power companies with stronger balance sheets, such as Tenaga Nasional Bhd (TNB) and YTL Power International Bhd, dishing out more dividends. This is while those with high gearing, like Malakoff Corp Bhd, would be able to repair their financial position over the next few years.