KUALA LUMPUR (July 27): CGS-CIMB Securities Research has maintained a “neutral” rating on the utilities sector and sees Tenaga Nasional Bhd as a key beneficiary of National Energy Transition Roadmap (NETR)-driven cross-border electricity exports.

In a sector note on Wednesday (July 26), the research house said the NETR aims to position Malaysia as a leader in the energy transition agenda in the region.

It said Phase 1 of the roll-out will see a debut of 10 flagship projects worth RM25 billion.

“We are excited about the NETR as it could reignite domestic investments and broader economic development whilst also reviving interest in Malaysian utilities.

“We see Tenaga as a key beneficiary.

“YTL Power International Bhd along with players within the solar value chain and battery solution providers are also potential beneficiaries,” it said.

CGS-CIMB explained that it views Tenaga as a key beneficiary of NETR-driven cross-border electricity exports via incremental revenues from wheeling charges for the usage of the group’s transmission grid network while increased RE plant-ups domestically could accelerate the group’s energy transition ambitions.

“YTL Power’s entrenched market position in Singapore and strategically located unique green energy data centre in Johor are also well-positioned to benefit.

“Meanwhile, listed companies in the solar value chain are Solarvest Holdings Bhd, Samaiden Group Bhd, Sunview Group Bhd and Pekat Group Bhd, and on the battery storage side, Genetec Technology Bhd and Citaglobal Bhd.

“We stay sector neutral as we are constructive on the power names but remain lukewarm on the gas utilities companies,” it said.