Tenaga Nasional outlines RM43 billion grid plan. UOB target for Tenaga Nasional stock is RM14.60

Published on 10/19/2026 at 01:03 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

H1 revenue rose 7.5 percent to MYR 35.34 billion. UOB Kay Hian kept a HOLD rating on Tenaga Nasional stock on September 23, 2026.

Energy investment and earnings

Tenaga Nasional outlined MYR 43 billion of grid investment on October 15, 2026.
First-half 2026 revenue rose 7.5 percent to MYR 35.34 billion on September 23, 2026.
Tenaga Nasional stock was last at MYR 13.00 at 4:59 p.m. MYT on October 16, 2026.

Tenaga Nasional, MYL5347OO009, Illustration mit AI erstellt.

Tenaga Nasional outlined MYR 43 billion of grid investment on October 15, 2026, while UOB Kay Hian retained a MYR 14.60 target for the utility. The investment plan adds a long-term growth angle to a stock still weighed by the cost of household electricity subsidies.

Grid spending reaches MYR 43 billion

Tenaga Nasional's senior strategy officer said the group needs substantial generation and grid modernization investment to support Malaysia's changing energy mix, The New Straits Times reported on October 15, 2026. The plan covers MYR 43 billion under the 2025 to 2027 regulatory period, giving the company a substantial capital program tied to rising electricity demand.

What does the subsidy mean for earnings?

The immediate counterweight is the expanded household fuel-surcharge exemption. The Edge Malaysia reported on September 21, 2026 that Tenaga Nasional agreed to absorb MYR 120 million to MYR 150 million of costs, with analysts estimating a 2 percent to 3 percent impact on fiscal-year earnings. The same report said UOB Kay Hian lowered its rating to HOLD and cut its target to MYR 13.80 from MYR 18.00.

The company's first-half operating picture was stronger. Quartr reported on September 23, 2026 that first-half revenue rose 7.5 percent year over year to MYR 35.34 billion, while core profit after tax increased 5.3 percent to MYR 2.31 billion. EBITDA rose 5.0 percent to MYR 10.78 billion, although the margin fell to 30.8 percent from 31.6 percent.

Three events set the balance

On September 21, 2026, the subsidy decision carried a MYR 120 million to MYR 150 million cost estimate, according to The Edge Malaysia. On September 23, 2026, first-half revenue reached MYR 35.34 billion, according to Quartr. On October 15, 2026, the grid program was reported at MYR 43 billion by The New Straits Times.

Stock context in Malaysia

Tenaga Nasional's next market question is whether grid investment can offset near-term regulatory cost pressure. The company was last quoted at MYR 13.00 on Bursa Malaysia on October 16, 2026 at 4:59 p.m. MYT. Its market capitalization was MYR 75.8 billion, with a 52-week range of MYR 12.50 to MYR 14.90.