Tenaga Nasional Bhd shares fell 0.46% to RM13.08 as of 3:23pm on Thursday, with 41.72 million shares changing hands.
The utility stock opened at RM13.18 and climbed to an intraday high of RM13.26 before slipping to a low of RM13.06. It was last traded at RM13.08, down six sen from its previous close of RM13.14.
The latest decline comes after TNB shares fell 12% from their recent high, with RHB Investment Bank maintaining its BUY call and RM16.50 target price in its latest research note.
RHB said TNB’s temporary electricity bill relief programme is expected to have a limited impact on earnings, with the group allocating between RM120 million and RM150 million to support around one million domestic customers using between 600kWh and 800kWh of electricity a month.
The measure, which covers the automatic fuel adjustment, retail charge and Sales and Service Tax, is expected to reduce affected households’ bills by around RM40 a month from September to December 2026.
RHB estimates the additional cost could reduce TNB’s FY2026 earnings by up to 3%, although it believes the actual impact could be lower given expectations for stable coal and gas prices.
The research house also expects TNB’s earnings to strengthen in the second half of FY2026, supported by a projected reduction in its effective tax rate to 18% in the fourth quarter.
RHB said the lower tax rate could more than offset the electricity bill relief allocation while TNB is expected to maintain positive free cash flow and an estimated dividend yield of about 4%.
The research house has left its FY2026 and FY2027 earnings forecasts unchanged, with its RM16.50 target price implying around 26% upside from the current share price.
