“We estimate around 55% of TNB’s generation capacity (50%, if we include Southern Power Generation in the total capacity base) is coal-based, with most of the coal capacity coming from the Manjung power plants and the latest Jimah East plant, ” MIDF Research said in a note to clients yesterday. (File picture of the Jimah Power Station in Port Dickson)
PETALING JAYA: The potential listing of Tenaga Nasional Bhd
’s (TNB) power generation unit, while not expected to have a material fundamental change to the utility’s business outlook, would alleviate the environmental, social and governance (ESG)-driven valuation discount on the stock.
According to MIDF Research, TNB’s valuations have been partly weighed down given increasingly ESG-focused investors.
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