The impact of fuel margins may affect coal-fired power plant players’ bottom lines – albeit to a moderate extent, says HLIB Research.
PETALING JAYA: Electricity demand is set to remain resilient in the second half of the year with core prices expected to normalise in the upcoming quarters.
The impact of fuel margins may affect coal-fired power plant players’ bottom lines – albeit to a moderate extent, according to HLIB Research.
It remained upbeat on the National Energy Transition Roadmap (NETR), which would be a major driver of the energy transition, with clearer goals and funding requirements being laid out. It maintains its “overweight’’ stand on the sector.
Its top picks of the sector are Tenaga Nasional Bhd
for which it has a “buy’’ call with a target price (TP) of RM12 a share.
The others are YTL Power International Bhd (TP: RM2.21 a share) and Solarvest Holdings Bhd (TP: RM1.53 a share).
According to HLIB Research, the NETR project’s 70% renewable energy capacity is to be dominated by solar at 58% of total installed capacity, followed by hydro and bioenergy at 11% and 1% respectively.
