MIB Research Summary - 27 Oct 2014

Tenaga Nasional: Maintain Buy Expect a strong finish  Shariah-compliant

We estimate TNB’s 4QFY14 core net profit at about MYR1.5b (+100% YoY, -4% QoQ), 29% of our FY14 forecast. The benefits from higher coal-fired generation (+22% QoQ) would more than offset seasonally higher costs and potentially higher taxes. Reiterate BUY with an unchanged MYR14.00 TP. Technicals: Diminished autumn selling pressures The FBM KLCI rebounded 30.55 points WoW to close at 1,818.66, as some consistent buying activities led the index up above the 1,800-mark. Volume fell from 2.05b to 1.25b shares. Trading idea is a Take Profit call on RSAWIT at MYR0.72 & MYR0.84.