For QE31/11/2014, Tenaga's revenue decreased by RM440.3 million or 3.9% q-o-q as a direct result of a lower demand growth recorded in the current quarter of 2.3% in the Peninsula and 0.7% in Sabah. Meanwhile net profit increased q-o-q to RM2,351.9 million as compared to RM1,355.9 million recorded in the preceding quarter mainly due to a lower operating cost in the current quarter. The lower operating cost was mainly due to the lower fuel cost.
Table 1: Tenaga's last 8 quarterly results
Chart 1: Tenaga's last 28 quarterly results
Valuation
Tenaga (closed at RM14.52 yesterday) is now trading at a trailing PER of 11.6 times (based on last 4 quarters' EPS of 125.6 sen). At this PER multiple, Tenaga is deemed fairly attractive.
Technical Outlook
From daily Chart 2, we can see that Tenaga broke above its recent high of RM14.60 (recorded in November 2014). However, the breakout did not sustain. This may lead to a short period of correction ahead. In the event of short-term weakness, the stock can expect support from the "uptrend line" at RM13.80 (plus the psychological RM14.00 mark).
Chart 3: Tenaga's daily chart as at Jan 22, 2015 (Source: ShareInvestor.com)
From the monthly Chart 3, we can see that Tenaga has surpassed the upper line of the expanding triagle at RM12.00 in late 2013. As such, Tenaga can expect string support at the surpassed RM12.00 in the event of weakness or correction.
Chart 4: Tenaga's monthly chart as at Jan 22, 2015 (Source: ShareInvestor.com)
Conclusion
Based on good financial performance, attractive valuation & positive technical outlook (albeit possible short-term weakness), Tenaga remains a good stock for long-term investment.
Note:
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, Tenaga.
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