FIGURE 1: TENAGA NASIONAL BHD
LAST 5 YEARS SHARE PRICE TREND
**analysis
based on 2018 annual report.
1.
GENERAL INTRO: TENAGA NASIONAL BHD (TNB) is the largest
utilities company in Malaysia.
2.
NOTABLE POINTS:
a. In
2018 report, TNB reported a total domestic generating capacity of 10,917.53 MW,
domestic transmission network of length 23,082 km, domestic distribution
network length of 660,038 km, services reach ~9.65 million customers and total
units of electricity sold of 118,814.46 GWh.
3.
IS THIS COUNTER A STRONG GROWTH STOCK?
a. REVENUE
RANGE (RM million): 50,392.5 million as reported in 2018 annual report, this is
a high revenue company.
b. SHARE
PRICE: from 2015-2020, share price ranged from ~ RM10.00 to RM16.00.
c. EARNING
PER SHARE (EPS): earning per share in last 5 years was fluctuating, ranging
from 65.4 to 130.2sen
d. FUTURE
POTENTIAL/PROSPECTS: share price expect to be stable in the next few years
e. CAPITAL
EXPENDITURE (CAPEX): spending on purchase of new fixed assets is RM 11,819.3
million, around 7% of total assets.
4.
IS THIS A STRONG DIVIDEND STOCK?
a. DIVIDEND
YIELD: in 2018 financial year, TNB declared a dividend payout of 53.27 sen per
share to shareholders, which amounts to a dividend yield of 4.11%.
b. DIVIDEND
PAYOUT RATIO: Hence, in 2018 financial year, TNB paid out 81% of its earnings
to shareholders in the form of dividend.
c. CONSISTENCY:
the dividend payout was consistent, the dividend paid to shareholders in the last
five years ranged from 29 to 61 sen.
5.
IS THE MANAGEMENT PERFORMANCE GOOD?
a. RETURN
ON EQUITY (ROE): in 2018 financial year, TNB reported a moderate return of
shareholders’ equity, at 8.3%. last five years ROE ranged from 8.3 to 16.3%
b. COST-TO-INCOME
RATIO: cost-to-income ratio is high, at 898%.
6.
OTHER INDICATORS:
a. CASH
FLOW: cash flow is positive, around RM 7,598 million, equivalent to RM 1.33 per
share.
b.
SUPPORT BY INSTITUTIONAL INVESTORS: this counter
is very well supported by institutional investors, there are 30 institutional
investors at top 30 major shareholders list, including LEMBAGA TABUNG HAJI (0.53%),
EPF (13.87%), PERMODALAN NASIONAL BERHAD (2.7%), SKIM AMANAH SAHAM BUMIPUTERA (9.1%),
KUMPULAN WANG PERSARAAN (DIPERBADANKAN) (5.42%) and insurance companies/investment
funds. Its major shareholders is Khazanah Nasional Berhad (28.76%).
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