2nd largest Market Capitalization Stock in KLSE: TENAGA NASIONAL BHD (5347)

Last week I wrote on Maybank which is the biggest market capitalization in Malaysia. Today, I am writing on the second largest capitalization is Tenaga.
Snapshot below is the Top 100 Companies in KLSE by market capitalization on 11 April 2020. Tenaga is the second largest stock based on market capitalization in KLSE, with RM68.5 Billion. Based on the closing price on 110 April 2020,  the Price Earning ratio is 15.1 with Dividen Yield of 8.3%.

TENAGA is the largest player in generating and providing electricity in Malaysia. Tenaga Nasional Berhad is engaged in the generation, transmission, distribution, and sale of electricity in Malaysia. Its core business comprises- Generation division, Transmission division and Distribution division. If you do not know Tenaga, you are staying in the jungle probably. Tenaga also diversified geographically through equity ownership in the UK, Turkey, Saudi Arabia, Kuwait, India an Indonesia and Pakistan. Without electricity today, we all will be suffering like no air-conditioning running, our devices cannot be charged, no light, fan etc. So electricity is utmost essential after the Air, Water, Food, do you agreed.

Ok, enough introduction of Tenaga, let's focus on the stock valuation. From the stock chart from i3investor.com, the Peak price for Tenaga for past 5 years is at RM15.74 and already declines 46%. Year to date is drop 31%. Yesterday closed at RM12.04

Data from Morningstar:
Consistent growth in Revenue.
Consistent growth in Net income, drop in last 2 years
Consistent growth in Dividen with healthy payout ratio range from 26.75% - 80%
Free cash flow is positive for past 9 years.

As for the Dividen, there is increasing in term of the yearly dividen payout. Dividen payout ratio is range from 26.75% to 80%, a healthy and sustainable range.

As for the Dividen yield for past 5 years,

Max = 4.00%

Min = 2.18%

Ave = 3.41%

Current is 8.30% above the 5 years average

As for the PE ratio for past 5 years:

Max = 26.65

Min = 7.20

Ave = 16.00

Current is 16.54 which is above the Average

As for the P/B ratio for past 5 years, it stay above 1.2

Max = 1.79

Min = 1.01

Ave = 1.38

Current is 1.01 below the average

In Summary, in my personal opinion, electricity demand may drop during the MCO period due to Covid-19 but earnings could be unaffected. Tenaga’s earnings are expected to be sustainable at current level with stable cash-flow and dividend payout.