Tenaga Nasional stock weighs Kenyir solar plans and lower charges

Published on 10/07/2026 at 04:08 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Tenaga Nasional stock trades at MYR 12.98 on October 7, 2026, as Kenyir qualifies for a 14 sen charge. H1 revenue rose 7.5 percent.

Tenaga Nasional, MYL5347OO009, Illustration mit AI erstellt.

Tenaga Nasional (ISIN MYL5347OO009) was trading at MYR 12.98 on Bursa Malaysia on October 7, 2026 at 9:40 a.m. MYT, up 0.62 percent from the previous close. The latest project update gives the utility a concrete renewable-energy catalyst while investors continue to assess subsidy costs.

Kenyir qualifies for lower charges

According to The Star on October 5, 2026, Tenaga Nasional's 595MW Kenyir hybrid hydro floating solar project is on track to qualify for Malaysia's accelerated Corporate Renewable Energy Supply Scheme. That status would reduce the system access charge to 14 sen per kWh for the first 10 years, compared with the previously agreed 20 sen.

Phase 1 combines 59MW of hydro capacity with 785MWp of floating solar and targets commercial operation in the fourth quarter of 2028. Tenaga Nasional has also shortlisted five other reservoirs with potential hybrid hydro floating solar capacity of more than 1.9GW, broadening the strategic value beyond one project.

Revenue growth meets margin pressure

Quartr reported that H1 2026 revenue rose 7.5 percent year over year to MYR 35,339.7 million. EBITDA increased 5.0 percent to MYR 10,778.4 million, although the EBITDA margin declined to 30.8 percent from 31.6 percent.

The comparison is mixed rather than one-directional. Core PAT improved 5.3 percent to MYR 2,312.8 million, while reported PAT declined 10 percent to MYR 1,993.2 million because of lower foreign-exchange gains and higher operating expenses. Operating expenses rose 10.5 percent year over year, keeping cost discipline central to the investment case.

Analysts weigh subsidy exposure

The Edge Malaysia reported on September 21, 2026, that 18 of 22 analysts tracked by Bloomberg rated Tenaga Nasional Buy, while four rated it Hold and none rated it Sell. The average 12-month target was MYR 16.17, so the price target lies 24.58 percent above the MYR 12.98 market price.

The counter-factor is the expanded household electricity subsidy. Analysts cited by The Edge Malaysia estimated that the additional MYR 120 million to MYR 150 million burden could reduce Tenaga Nasional's 2026 earnings by 2 percent to 3 percent. The company has described the contribution as a one-off measure, but the future design of the automatic fuel adjustment framework remains important for the pass-through model.

Stock remains below yearly high

Tenaga Nasional was last at MYR 12.98 on Bursa Malaysia on October 7, 2026 at 9:40 a.m. MYT. Its MYR 12.50 to MYR 14.90 52-week range places the price 12.89 percent below the high, while the market capitalization stood at MYR 75.7 billion.