Tenaga Nasional Bhd shares rose 0.31% at 12.18pm today, gaining 4 sen to RM13.08, as the utility continued to trade above the RM13 level despite concerns over its absorption of additional electricity subsidy-related costs.
A total of 81,013,000 shares changed hands, with the stock opening at RM13.02 and moving between RM12.86 and RM13.10 during the morning session.
The latest share price comes after RHB Research and CIMB Securities maintained their BUY calls on TNB, with target prices of RM16.50 and RM15.90 respectively.
TNB is expected to absorb RM120 million to RM150 million in additional costs from September to December 2026 following the Government’s expansion of the monthly electricity consumption threshold for bill exemptions from 600kWh to 800kWh.
The exemptions cover the Automatic Fuel Adjustment, RM10 retail charges and 8% Sales and Services Tax and are expected to benefit more than eight million domestic users.
RHB Research said the additional costs would account for only 2% to 3% of its FY26 earnings estimate, while CIMB Securities cut its FY26 core net profit forecast by 2% to account for the impact.
CIMB also highlighted concerns over whether continued subsidy absorption could affect investor confidence in the predictability of TNB’s regulated returns under the Incentive-Based Regulation framework.
