Tenaga Nasional Berhad (KLSE:TENAGA) May Have Issues Allocating Its Capital
Nov 24
Malaysian (KLSE) Utilities Sector Analysis
UpdatedNov 27, 2022
DataAggregated Company Financials
Companies13
- 7D2.3%
- 3M-2.1%
- 1Y-2.1%
- YTD-2.6%
In the last week, the Utilities industry is up 2.3%, with Tenaga Nasional Berhad up 4.8%. The industry has been flat over the past 12 months despite the gain this week. Earnings are forecast to grow by 3.1% annually.
Sector Valuation and Performance
Has the Malaysian Utilities Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sun, 27 Nov 2022 | RM109.1b | RM139.4b | RM8.3b | 12.5x | 13.1x | 0.8x |
| Tue, 25 Oct 2022 | RM106.9b | RM129.8b | RM8.5b | 13x | 12.6x | 0.8x |
| Thu, 22 Sep 2022 | RM108.9b | RM129.8b | RM8.5b | 13.6x | 12.8x | 0.8x |
| Sat, 20 Aug 2022 | RM110.4b | RM119.1b | RM7.4b | 13.9x | 15x | 0.9x |
| Mon, 18 Jul 2022 | RM103.1b | RM118.6b | RM7.3b | 13.1x | 14.1x | 0.9x |
| Wed, 15 Jun 2022 | RM107.1b | RM118.6b | RM7.3b | 13.8x | 14.6x | 0.9x |
| Fri, 13 May 2022 | RM110.8b | RM109.1b | RM6.2b | 14x | 18x | 1x |
| Sun, 10 Apr 2022 | RM112.1b | RM109.2b | RM6.2b | 14.1x | 18.2x | 1x |
| Tue, 08 Mar 2022 | RM108.9b | RM109.2b | RM6.2b | 13.9x | 17.7x | 1x |
| Thu, 03 Feb 2022 | RM110.8b | RM98.3b | RM6.6b | 13.6x | 16.8x | 1.1x |
| Sat, 01 Jan 2022 | RM113.8b | RM98.3b | RM6.6b | 13.9x | 17.2x | 1.2x |
| Mon, 29 Nov 2021 | RM111.2b | RM97.3b | RM6.7b | 13.5x | 16.7x | 1.1x |
| Wed, 27 Oct 2021 | RM115.9b | RM94.8b | RM6.5b | 14.7x | 17.8x | 1.2x |
| Fri, 24 Sep 2021 | RM117.1b | RM94.8b | RM6.5b | 14.8x | 18x | 1.2x |
| Sun, 22 Aug 2021 | RM115.0b | RM94.9b | RM6.5b | 15x | 17.7x | 1.2x |
| Fri, 09 Jul 2021 | RM113.4b | RM94.9b | RM6.5b | 14.7x | 17.4x | 1.2x |
| Thu, 01 Apr 2021 | RM117.2b | RM91.6b | RM6.9b | 16.4x | 16.9x | 1.3x |
| Sun, 03 Jan 2021 | RM122.5b | RM93.2b | RM6.5b | 16.9x | 18.9x | 1.3x |
| Wed, 07 Oct 2020 | RM119.5b | RM96.3b | RM5.8b | 18.6x | 20.6x | 1.2x |
| Tue, 30 Jun 2020 | RM127.9b | RM99.6b | RM5.8b | 19.4x | 21.9x | 1.3x |
| Fri, 03 Apr 2020 | RM123.4b | RM104.6b | RM6.7b | 17x | 18.4x | 1.2x |
| Mon, 06 Jan 2020 | RM138.3b | RM106.3b | RM7.7b | 16.8x | 17.9x | 1.3x |
Price to Earnings Ratio
20.5x
Current Industry PE
- Investors are pessimistic on the Malaysian Utilities industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 13.4x which is lower than its 3-year average PE of 17.6x.
- The 3-year average PS ratio of 1.2x is higher than the industry's current PS ratio of 0.79x.
Past Earnings Growth
- The earnings for companies in the Utilities industry have grown 7.8% per year over the last three years.
- Revenues for these companies have grown 9.2% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the Malaysian Utilities sector?
| MY Market | 2.46% | |
| Utilities | 2.29% | |
| Electric Utilities | 4.77% | |
| Other Utilities | 4.68% | |
| Renewable Energy | 2.66% | |
| Water Utilities | 1.06% | |
| Gas Utilities | -1.52% | |
Industry PE
- Investors are most optimistic about the Water Utilities industry, which is trading close to its 3-year average PE ratio of 28.2x.
- Analysts are expecting annual earnings growth of 23.8%, which is lower than the prior year's growth of 27.0% per year.
- Investors are most pessimistic about the Other Utilities industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average.
Forecasted Growth
- Analysts are most optimistic on the Water Utilities industry, expecting annual earnings growth of 24% over the next 5 years.
- This is roughly in line with its past earnings growth rate.
- In contrast, the Other Utilities industry is expected to see its earnings decline by 22% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| TENAGA Tenaga Nasional Berhad | RM8.78 | 4.8% +RM2.3b | -6.4% | PE14.3x | |
| YTLPOWR YTL Power International Berhad | RM0.71 | 6.8% +RM364.6m | 10.9% | PE4.3x | |
| YTL YTL Corporation Berhad | RM0.56 | 2.8% +RM164.5m | -5.9% | PE12.8x | |
| MALAKOF Malakoff Corporation Berhad | RM0.65 | 4.0% +RM122.2m | -14.6% | PE12.5x | |
| MFCB Mega First Corporation Berhad | RM3.34 | 1.8% +RM56.7m | -1.8% | PE6.1x |
