Hi Folks. Make a difference this Tuesday, be an encourager!
COMPANY UPDATE - KENANGA
TENAGA (OP ↔; TP: RM10.17 ↔). Green Journey Continues. Last week, TENAGA announced two power plant projects, a repowering of its Sg Perak hydro power plant and a greenfield 2,100MW combined cycle gas-fired power plant in Kapar, to accelerate its Energy Transition agenda in achieving its net zero 2050 emission aspiration. While it is earning-neutral to the group, it demonstrate the commitment of TENAGA towards ESG-compliance. Maintain OUTPERFORM and TP of RM10.17, having reflected a 5% discount on a 2-star ESG rating as appraised by us.
NOVA (OP ↔; TP: RM1.09 ↔). Demand for Supplements Reinvigorated. NOVA guided for volume growth scaling the mid-to-high teens for FY23 driven by the growing trend of the population consuming health supplements for better defence against communicable diseases, its widening distribution network, and penetration into local public hospitals. We also take comfort in its ability to pass on higher costs and hence sustaining margins. Maintain our forecasts, TP of RM1.09 and OUTPERFORM call.
Trade at your own risk. All the information made available here is generally provided to serve as an example only, without obligation and without specific recommendations for action.
