Tenaga Nasional Bhd

Master Tec Completes New with 3,600 Tonnes Additional Capacity

Stepping into Master Tec Group Berhad’s newly completed manufacturing facility in Alor Gajah, Melaka, feels like entering the future of Malaysia’s wire and cable industry. The sheer scale, advanced automation, and meticulous planning behind this factory are a testament to the company’s vision of pushing boundaries in cable manufacturing.

After months of anticipation following its IPO, Master Tec has delivered on its promise, launching its state-of-the-art factory designed to produce medium-voltage (MV) power cables. This expansion marks a significant milestone for the company, reinforcing its position as a key player in the industry. With production already ramping up, the impact on Master Tec’s financial performance is poised to be substantial.

The production lines are optimised for efficiency, integrating automation to minimise wastage and maximise output. As I observed the seamless coordination between raw material processing, extrusion, and final quality checks, it became evident that Master Tec is not just increasing capacity but also enhancing product consistency and reliability.

One of the key drivers behind this expansion is Master Tec’s ambition to strengthen its foothold in both domestic and export markets. The company has already been supplying to key markets such as Brunei, Singapore, and Thailand, and with this new facility, it is well-positioned to penetrate even more international territories.

Furthermore, the factory’s strategic location in Melaka provides logistical advantages, ensuring efficient distribution and cost-effectiveness in delivering products to clients. This is particularly crucial as Malaysia continues to develop its infrastructure and as industries demand higher-quality power transmission solutions.

From an investor’s perspective, the completion of this factory signals a strong growth trajectory for Master Tec. The company’s recent RM107.75 million supply contract with Tenaga Nasional Berhad (TNB) is just the beginning. With expanded production capabilities, Master Tec is now primed to secure larger contracts, further boosting its revenue streams.

Financially, Master Tec has been on an upward trajectory, reporting solid earnings in previous quarters. The increased production of MV power cables—highly sought after for large-scale industrial and utility applications—will drive higher-margin sales, strengthening profitability in the coming years. Additionally, the company’s commitment to efficiency and innovation ensures that operational costs remain optimised, translating into stronger bottom-line growth.

As I concluded my visit, it became clear that Master Tec’s new facility is not just about expanding production—it’s about redefining industry standards. The company’s strategic foresight, combined with its investment in cutting-edge technology, sets it apart in the competitive cable manufacturing landscape.

With its enhanced manufacturing capabilities, strategic market positioning, and a robust pipeline of contracts, Master Tec is well on its way to becoming a dominant force in the industry. For investors and industry stakeholders, this expansion is a strong indicator of the company’s long-term potential.

$MTEC / 0295 (MASTER TEC GROUP BERHAD)
$TENAGA / 5347 (TENAGA NASIONAL BHD)

The Bright Future of Solar Energy

As the world grapples with the pressing challenge of climate change, solar energy is emerging as a beacon of hope. Its rapid advancements and growing adoption are shaping a future where clean, renewable energy is the norm. Here’s a look at the trends and innovations driving the solar energy revolution and what the future holds, with a focus on Malaysia.

Technological advancements
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Recent years have seen significant progress in solar energy technology. Photovoltaic (PV) cells, the core component of solar panels, have become much more efficient, thanks to new materials like perovskite, which absorbs sunlight more effectively.

Innovations like bifacial panels, which capture sunlight on both sides, and solar tracking systems, which adjust to follow the sun’s movement, further enhance energy capture and efficiency.

In Malaysia, the efficiency of commercial solar panels has risen from 15% to over 20% in the last decade, with experimental technologies showing potential to exceed 40%. This means solar panels are becoming more powerful and affordable, making solar energy accessible to more people.‌

Cost reductions
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The cost of solar energy has plummeted, making it one of the most affordable energy sources. According to the International Renewable Energy Agency (Irena), the cost of solar PV electricity has fallen by 82% over the past decade.

In Malaysia, the government’s commitment to renewable energy has driven down costs through incentives and support for solar projects. This reduction is driven by economies of scale, technological improvements, and competitive market dynamics.

As a result, more homeowners, businesses and utilities are investing in solar installations, further driving down costs through increased demand and production efficiencies.

Energy storage solutions
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One of the critical challenges for solar energy has been its intermittency — the sun doesn’t shine all the time. However, advancements in battery storage technology are addressing this issue.

Lithium-ion batteries, solid-state batteries, and other storage innovations are enabling the storage of solar energy for use during cloudy days and at night, enhancing the reliability and appeal of solar power.

In Malaysia, the Energy Commission has been promoting energy storage solutions to complement solar power, which is expected to see significant growth in the coming years.

Integration with smart grids
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The integration of solar energy with smart grids is revolutionising energy management. Smart grids use digital technology to monitor and manage the flow of electricity, ensuring efficient distribution and reducing wastage.

By integrating solar energy, these grids can balance supply and demand more effectively, leading to a more resilient and sustainable energy system. In Malaysia, Tenaga Nasional Bhd (KL:TENAGA) is investing in smart grid technologies to better integrate renewable energy sources, including solar, into the national grid.

Policy and market trends
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Government policies and incentives are playing a pivotal role in the solar energy boom. Subsidies, tax credits and renewable energy mandates are encouraging investments in solar projects.

The Malaysian government has set a target of achieving 31% renewable energy capacity by 2025, with solar energy playing a crucial role in this transition.

Moreover, corporate investments and partnerships are accelerating the deployment of solar technologies. In 2023, Malaysia’s solar capacity was projected to add 493 megawatts (MW), demonstrating a robust growth trajectory.

Government policies and market dynamics are pivotal in shaping the solar energy landscape. In Malaysia, the government has set ambitious targets for renewable energy, aiming to achieve 31% renewable energy capacity by 2025.

Solar energy plays a central role in this vision, supported by policies such as the large-scale solar (LSS) programme, which facilitates the development of LSS farms through competitive bidding processes. Additionally, the net energy metering (NEM) scheme allows homeowners and businesses to offset their electricity bills by exporting surplus solar energy back to the grid.

Tax incentives and subsidies further enhance the financial attractiveness of solar investments. The Green Investment Tax Allowance (GITA) and Green Income Tax Exemption (GITE) encourage private sector participation in green technologies.

These incentives are complemented by the Sustainable Energy Development Authority (Seda), which oversees the growth of Malaysia’s renewable energy sector.
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Corporate and international collaborations also play a significant role in advancing the solar market. Foreign direct investment in Malaysia’s solar industry is increasing, with major global players establishing manufacturing and research facilities in the country. Furthermore, corporate power purchase agreements are gaining traction, enabling businesses to procure clean energy directly from solar developers. In 2023, Malaysia added 493MW of solar capacity, reflecting robust growth driven by these policy and market frameworks.

On the international stage, Malaysia is positioning itself as a regional leader in solar energy. The country’s strategic location, skilled workforce and supportive policies make it an attractive hub for solar manufacturing and export, further boosting the industry’s prospects.

Future directions
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Looking ahead, several trends and innovations will shape the future of solar energy. Next-generation solar technologies, such as quantum dot solar cells and solar fabrics, promise even higher efficiencies and new applications.

The rise of decentralised energy systems and community solar projects will democratise access to solar power, allowing more people to benefit from clean energy. Additionally, the integration of solar with other renewable sources, like wind and hydro, will create robust hybrid energy systems.

By 2030, decentralised energy systems could account for a significant portion of Malaysia’s electricity capacity, highlighting the shift towards more localised and resilient energy solutions.

The future of solar energy is bright, with technological advancements, cost reductions and supportive policies driving its growth.

As we move towards a sustainable future, solar energy will play a crucial role in achieving global climate goals and transitioning to a clean energy economy.

In Malaysia, continuous innovation and investment in solar technologies will harness the full potential of the sun and power a brighter, cleaner world.

$TENAGA / 5347 (TENAGA NASIONAL BHD)

Source: The Edge

Cypark Poised to Benefit from LSS Petra 5+ Programme

Cypark Resources Bhd is expected to see further upside from the large-scale solar (LSS) Petra 5+ programme and the 500 megawatt alternating current (MWac) hybrid hydro floating solar (HHFS) plant at Tasik Kenyir, Terengganu.
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BIMB Securities deemed Cypark as an experienced engineering, procurement, construction and commissioning player and floating solar farm owner, positioning it to benefit from the recent LSS Petra 5+ announcement.
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“The said programme introduces an allocation of up to 500MW capacity for floating solar farms alone (at a range of 10MWac to 500MWac).
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“Additionally, we are also positive on its recent news of a joint venture with Terengganu Inc for the development of a 500MWac HHFS plant at Tasik Kenyir, which is set to begin design this year with expected commissioning by the fourth quarter of 2026,” the research house said.

Combining solar energy production and battery storage, this HHFS is the single largest site in Malaysia with an estimated capital expenditure of RM2.1bil.
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“We foresee the group to have further upside in the future as we noted Tenaga Nasional Bhd having another three phases of HHFS mandate to be built at (Tasik) Kenyir until 2040,” BIMB Securities said.
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BIMB Securities reiterated its “hold” call on Cypark with a target price of 89 sen per share. At the close yesterday, Cypark shares were down 2.44% to 80 sen.

$CYPARK / 5184 (CYPARK RESOURCES BERHAD)
$TENAGA / 5347 (TENAGA NASIONAL BHD)

Source: The Star

Sharing from another remisier

Utilities & MEP Sector - Impact of Advanced Computing Chip Restrictions

🔷 The US restrictions on advanced computing chips have rattled the market, raising concerns about Malaysia's aspirations to become a data centre (DC) hub. Share prices of several Utilities and MEP players suffered due to fears of a potential slowdown in DC growth.

Utilities ⚡
🔷 TENAGA's allowed return for the regulated business in RP4 (2025-2027) should remain unaffected as the IBR framework includes mechanisms to compensate for any shortfall in allowed return due to lower-than-expected electricity demand from DCs. The at-risk portion is the RM16.3bn Contingent Capex, which relies on higher DC-driven electricity demand. Nonetheless, Contingent Capex does not form part of tariffs, so unused portions will not impact the allowed return during RP4. Future RAB growth will most likely depend on energy transition related growth, where the long-term average annual grid investment is forecasted to be RM12.1bn from 2023 to 2050 (vs RP4 base capex of RM8.9bn annually), according to the NETR.

🔷 For MALAKOF, the slowdown in DC growth should have minimal impact. Regardless of DC demand, 4GW of gas-fired plants are set to have their PPAs/SLAs expire by 2028, necessitating replacement with newer, more efficient gas plants, ensuring continued opportunities for MALAKOF.

🔷 YTLPOWR (NR) could be most severely affected due to limited GPU quota for Tier 2 countries (c.50,000 H100 GPU equivalents over three years (2025-2027)), directly affecting the Group's ability to build competitive AI infrastructure.

MEP 👨‍🔧
🔷 For some of the MEP players under our coverage, we believe the market has overreacted. The direct exposure to data centres is relatively low for both UUE and PEKAT.

UUE: Over 90% of UUE's revenue in Malaysia comes from TNB, while DC-related jobs contribute approximately 6% to their FY24 revenue.

PEKAT: EPE Switchgear is expected to contribute c.30% to the net profit in FY25F. 70% of EPE Switchgear's revenue is derived from TNB, 20% from the private sector, and 10% from the exports. While they do supply directly to DCs, the contribution remains immaterial.

🔷 Meanwhile, TNB's Capex is not solely dependent on rising electricity demand. Approximately 30% is allocated for maintenance, while around 40% (historically based on RP3) is tied to energy transition initiatives. The at-risk portion in RP4 (2025-2027) is the RM16.3bn Contingent Capex, which relies on higher DC-driven electricity demand. Base Capex in RP4 (+29% from RP3) will likely proceed as planned, ensuring continued job opportunities for UUE and PEKAT from energy transition-driven growth (long term average of RM12.1bn Capex annually to upgrade the grid).

On the flip side,
🔷 Power cables are critical components used in power distribution systems in DCs. Any slowdown in DC growth could negatively affect SCGBHD's purchase orders.

🔷 The regulation is set to take effect 120 days from publication, giving the Trump administration time to weigh in. While there is a possibility that policies may loosen under the Trump administration, news reports suggest the Biden team discussed the measures with its successor. Additionally, export controls have largely been a bipartisan national security priority, reducing the likelihood of a full reversal.

🔷 Overall, we believe TENAGA, MALAKOF, PEKAT, and UUE's earnings should be relatively shielded from any slowdown in DC growth in the near to medium term. For now, we maintain our recommendation for TENAGA (BUY, TP: RM16.04), MALAKOF (BUY, TP: 0.96), PEKAT (BUY, TP: RM1.17), UUE (BUY, TP: RM1.10) and SCGBHD (BUY, TP: RM1.63).

$TENAGA / 5347 (TENAGA NASIONAL BHD) $MALAKOF / 5264 (MALAKOFF CORPORATION BERHAD) $PEKAT / 0233 (PEKAT GROUP BERHAD)

$TENAGA / 5347 (TENAGA NASIONAL BHD)
Research Report by MAYBANK

$TENAGA / 5347 (TENAGA NASIONAL BHD)
Research by APEX

$TENAGA / 5347 (TENAGA NASIONAL BHD)
Research by TA

$TENAGA / 5347 (TENAGA NASIONAL BHD)
Research by RHB

$TENAGA / 5347 (TENAGA NASIONAL BHD)
Research by CGSI

TNB Inks Electricity Supply Agreement with Bridge Data Centres

Tenaga Nasional Bhd (KL:TENAGA) has signed the MY07 Electricity Supply Agreement (ESA) with hyperscale data centre solutions platform and Bain Capital-backed Bridge Data Centres (BDC), according to https://cutt.ly/PeZx5SFE...'s report on Friday.

The report noted that Malaysia's fastest ESA delivery was agreed upon to meet the urgent energy needs of an advanced data centre, citing TNB.

The parties signed a Bilateral Energy Supply Contract (BESC) Head of Terms (HoT) under the Corporate Renewable Energy Supply Scheme (CRESS).

The MY07 data centre, BDC’s latest project in Johor Ulu Tiram, Malaysia, is currently under construction.

Upon completion, MY07 will be a cutting-edge hyperscale data centre to support the region's increasing digital infrastructure needs.
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Key executives, including Datuk Ir Megat Jalaluddin Bin Megat Hassan, president and CEO of TNB, as well as Eric Fan, CEO of Bridge Data Centres, attended the signing ceremony at TNB headquarters in Jalan Bangsar, read the report.

$TENAGA / 5347 (TENAGA NASIONAL BHD)

Source: https://cutt.ly/MeZx5AgV

$TENAGA / 5347 (TENAGA NASIONAL BHD)
Research Report by TA

$TENAGA / 5347 (TENAGA NASIONAL BHD)
Research Report by PBIV

$TENAGA / 5347 (TENAGA NASIONAL BHD)
Research Report by KENANGA

$TENAGA / 5347 (TENAGA NASIONAL BHD)
Research Report by CGSI

KUALA LUMPUR: The government will look at how Tenaga Nasional Bhd (TNB) can play a role in realising the ASEAN Power Grid (APG) initiative.

KUALA LUMPUR: Tenaga Nasional Bhd (TNB) has enabled customers to log into the myTNB platform using MyDigital ID starting early 2025.

Analysts are mixed on Tenaga Nasional Bhd (TNB) following a technical visit to its Chenderoh hydropower plant in Perak.

KUALA LUMPUR: Tenaga Nasional Bhd (TNB) is expected to see continuous stable returns from its hydropower plants following the implementation of the Hydro Life Extension Programme (HLEP), according to RHB Investment Bank Bhd (RHB IB).

© New Straits Times Press (M) Bhd

$PETDAG / 5681 (PETRONAS DAGANGAN BHD) $TENAGA / 5347 (TENAGA NASIONAL BHD)
Di Malaysia lagi heboh pajak dividen 2% bagi yang dapat dividen di atas 100,000 Ringgit.

IPOH: Tenaga Nasional Bhd (TNB) has cut off the electricity supply to several substations in Seri Iskandar to ensure the safety of consumers following the floods.

© New Straits Times Press (M) Bhd

SUNGAI SIPUT: The state government hopes that Tenaga Nasional Bhd will adopt a better approach and improve communications by informing district offices before releasing water from dams in the state.

© New Straits Times Press (M) Bhd

Kumpulan Kitacon Bhd has secured a RM64.05mil contract from S P Setia Eco-Projects Management Sdn Bhd for the construction of 130 units of double-storey detached houses and a Tenaga Nasional Bhd substation in Precinct Arundina in Setia Alam, Shah Alam.

Malaysia will be the leading country in Asean in terms of energy transition and smart grid, with the help of Tenaga Nasional Bhd (TNB), says Trilliant Networks Inc.

KUALA LUMPUR: Malaysia will be the leading country in ASEAN in terms of energy transition and smart grid, with the help of Tenaga Nasional Bhd (TNB), said Trilliant Networks Inc.

PETALING JAYA: State-controlled Tenaga Nasional Bhd (TNB), which produces the bulk of its electricity from dirty fossil fuels, has been shoring up its environmental, social and governance (ESG) profile.

$TENAGA / 5347 (TENAGA NASIONAL BHD)
Research by HLIB

UBS report on datacenter

Cannot upload cos file too big.

But here's summary:

The data centre (DC) story has been a strong driver for Malaysia, with Microsoft, Google, Amazon and ByteDance collectively announcing investments of around US $12bn (about RM60bn). To attempt to answer key investor questions we have looked at the implications of these investments across the entire Malaysian market. While we think investor concerns about oversupply are partly warranted in the short term, long-term trends are robust (15% supply and demand CAGRs for 2024E-50E) with AI demand set to balance the market, in our view. Our analysis of global cloud regions suggests land demand in Malaysia of 32-249 acres pa over H224-2028, positive for developers. DC-related sectors including construction, utilities and property, as well as Telekom Malaysia (TM), are up 22-37% YTD and we expect further upside for TNB, TM, Mah Sing and global DC operator GDS.

$TM / 4863 (TELEKOM MALAYSIA BERHAD) $MAHSING / 8583 (MAH SING GROUP BERHAD) $TENAGA / 5347 (TENAGA NASIONAL BHD) $YTLPOWR / 6742 (YTL POWER INTERNATIONAL BHD) $CRESNDO / 6718 (CRESCENDO CORPORATION BERHAD)

MELAKA: A p-hailing rider was killed when his motorcycle skidded and crashed into a Tenaga Nasional Bhd feeder pillar along Jalan Ayer Keroh-Gapam last night.

© New Straits Times Press (M) Bhd

KUALA LUMPUR: Tenaga Nasional Bhd’s (TNB) chief financial officer (CFO) Nazmi Othman will be replaced by MMC Corporation Bhd’s current group CFO Badrulhisyam Fauzi following the expiry of the former’s employment contract on Dec 31, 2024.

© New Straits Times Press (M) Bhd

GEORGE TOWN: Tenaga Nasional Bhd (TNB) is carrying out works to strengthen the cable bridge at the 275kV underground cable project site from the Bayan Lepas Main Input Substation (PMU) to the Intel PMU here.

© New Straits Times Press (M) Bhd