TABLE OF CONTENTS

1.0 INTRODUCTION TO ULTILITIES SECTOR MALAYSIA.........................................1

2.0 INTRODUCTION TO THE CHOOSEN COMPANIES...............................................3
2.1 INTRODUCTION TO TELEKOM MALAYSIA ™...........................................3
2.2 INTRODUCTION TO TENAGA NASIONAL BERHAD..................................4
3.0 RATIO ANALYSIS OF TENAGA NASIONAL BERHAD............................................4
3.1 LIQUIDITY RATIO..........................................................................................6
3.2 ACTIVITY RATIO............................................................................................7
3.3 LEVERAGE RATIO.........................................................................................7
4.0 RATIO ANALYSIS FOR TELEKOM MALAYSIA.......................................................8
4.1 LIQUIDITY RATIO..........................................................................................9
4.2 MARKET VALUE RATIO..............................................................................10
4.3 LEVERAGE RATIO.......................................................................................10
5.0 EVALUATION OF THE COMPANIES CAPITAL STRUCTURE..............................11
6.0 SUMMARY AND CONCLUSION..............................................................................13
REFERENCES...............................................................................................................14

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1.0 INTRODUCTION TO ULTILITIES SECTOR MALAYSIA

The outlook for the utility sector in the year ahead remains positive, with earnings resilience
backed by regulated assets for power and gas utility companies. The earnings defensiveness
of the utility industry, in turn, is expected to support decent dividend yields, thus rendering
the sector an attractive investment area for yield seekers. According to Kenanga Research, the
regulated assets, which generate recurring cash flows for the utility sector, could anchor
dividend yields of 4% to 6%. As such, the brokerage maintained its “overweight” rating on
the utility sector. “We continue to like the sector for its earnings resilience backed by
regulated assets for power and gas utilities, while earnings for independent power producers
(IPPs) are supported by power purchase agreements (PPAs).

The utility area in Malaysia is a directed industry that offers fundamental types of assistance
like power, water, and gas to the general population. The area is overwhelmed by a couple of
huge players, for example, Tenaga Nasional Berhad (TNB), Telekom Malaysia Berhad (TM),
and Syarikat Bekalan Air Selangor Berhad (SYABAS). The utility area is a significant piece
of the Malaysian economy, contributing around 3% to the country's Gross domestic product
in 2021. The area is likewise a significant manager, with north of 200,000 individuals
working in the business. The utility area has confronted a few difficulties lately, including the
need to put resources into new framework to fulfill developing need, the progress to clean
energy, and the effect of environmental change. Notwithstanding, the area is likewise viewed
as a generally protected and stable speculation, because of its managed nature and
fundamental administrations.

(a) Power
Malaysia has abundant electricity supply resources. The dominant fuel source is gas, which
contributes more than half of the national energy demand. Alongside its ongoing population
boom, demand for electricity will naturally increase, though this should be comfortably dealt
with by the country’s native supplies. In Peninsular Malaysia, electricity is supplied by the
private company Tenaga Nasional Berhad and in East Malaysia by Sabah Electricity – jointly
owned by Tenaga Nasional Berhad and the state Government of Sabah – and the private
Sarawak Electricity Supply Corporation. The state-owned Petronas, which is among the
largest companies in Malaysia, dominates the country’s oil industry through partnerships with
other international players, particularly in the exploration sector. Petroleum giants British

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Petroleum and Shell also operate in the country. The Malaysian Oil and Gas Services Council
is the leading trade association in the sector.

(b) Water
Malaysia has a dependable, plentiful and safe water supply alongside its high average annual
rainfall of 300 cm. The entire population of Malaysia uses an improved drinking water
source and 96 per cent of people have adequate sanitation facilities (2010). In the late 1980s
and early 1990s, several public–private partnership projects were implemented in the water
supply and sanitation sector, including three build–operate–transfer-style water supply
projects between 1987–89, and one build–operate–transfer-style sewerage project in 1992.
Water utilities in Malaysia are managed and overseen by individual state water authorities.
The Central Federal Public Works Department in Kuala Lumpur oversees their operations,
while the National Water Services Commission serves as the national regulatory body for
water supply in the country. The Water Resources Master Plan sees the development of water
resources for the country up to 2050 as involving around 60 major water projects, including
building new dams, raising existing dams, constructing new treatment plants, inter-state water
transfer and identifying catchment areas for development.

(c) Telecoms
Due to sustained private investment, Malaysia possesses one of the most advanced telecoms
and internet sectors in the entire Asia-Pacific region. Main mobile providers include Maxis,
Celcom and DiGi, while the main fixed line operator is Telekom Malaysia. A major
restructuring process saw Telekom Malaysia merge its mobile sector with Celcom, creating
Axiata. In 2008, the Ministry of Energy, Water and Communications and Telekom Malaysia
Berhad signed a public–private partnership agreement to officially launch Phase 1 of an
initiative to provide high-speed broadband throughout Malaysia.

The Malaysian Communications and Multimedia Commission acts as the primary regulator
for the sector. Although the industry is privatized and saturated with competition, the
government has put through many initiatives to capitalize on growth and plans for the future.
Government policy on the telecoms industry has been driven by its Vision 2020 policy. The
plan is to achieve this by attracting advanced IT and multimedia companies to the country,
which will in turn filter through to the telecoms sector and expand the related infrastructure.

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2.0 INTRODUCTION TO THE CHOOSEN COMPANIES

The two companies that I have chosen for this analysis are:

(a) Tenaga Nasional Berhad (TNB)

 TNB is the largest electricity utility company in Malaysia and one of the largest in the
world. It generates, transmits, and distributes electricity to over 9 million customers in
Malaysia.

(b) Telekom Malaysia Berhad (TM)

 TM is the leading telecommunications company in Malaysia. It provides a wide
range of services, including fixed-line and mobile telephony, broadband internet, and
pay TV.

2.1 INTRODUCTION TO TELEKOM MALAYSIA ™

Telekom Malaysia Berhad (TM): TM is the main media communications organization in

Malaysia. It gives many administrations, including fixed-line and portable communication,
broadband web, and pay television. Telekom Malaysia Berhad (TM) is the main media
communications organization in Malaysia, giving thorough correspondence administrations
to private, business, and government clients. Laid out in 1946, TM plays had an essential
impact in interfacing Malaysians and organizations, driving the development of the country's
correspondence framework.

TM's administrations envelop fixed-line and portable communication, broadband web,

advanced TV, and endeavor arrangements. The organization works a broad fiber-optic
organization, empowering rapid web access and other high level media communications
administrations. TM has been instrumental in propelling Malaysia's computerized landscape,
supporting the country's advanced change drives and encouraging boundless web availability.

Notwithstanding customer administrations, TM offers a wide cluster of arrangements custom-

made for organizations, including information administrations, distributed computing,
network protection, and Web of Things (IoT) network. These administrations engage

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organizations to upgrade their activities and stay serious in the advanced age. Both TNB and
TM are vital parts of Malaysia's utilities and broadcast communications areas, separately,
contributing essentially to the country's monetary turn of events and mechanical progression.

2.2 INTRODUCTION TO TENAGA NASIONAL BERHAD

Tenaga Nasional Berhad (TNB) is the leader power service organization in Malaysia. Laid
out in 1949, TNB plays had a significant impact in controlling Malaysia's quick
industrialization and monetary development. As the biggest power service organization in the
country, TNB is liable for the age, transmission, and appropriation of power to more than 9
million clients across Peninsular Malaysia, Sabah, and Labuan.

TNB works a different scope of force age offices, including warm, hydroelectric, and
sustainable power sources. The organization has been effectively engaged with expanding its
environmentally friendly power portfolio, lining up with Malaysia's obligation to supportable
and clean energy sources. TNB's drives in environmentally friendly power incorporate
sunlight based, wind, and biomass projects, contributing essentially to Malaysia's change
towards a greener energy future.

Notwithstanding its center activities, TNB is likewise taken part in global endeavors and
interests in the power area. The organization's endeavors in innovative work center around
creative arrangements and advancements to improve productivity and supportability in power
age and conveyance.

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3.0 RATIO ANALYSIS OF TENAGA NASIONAL BERHAD

The following are discoveries from the outcomes monetary execution of Tenaga Nasional
Berhad (TNB) from year 2017 to 2018 in view of liquidity proportion, action proportion,
influence proportion and benefit proportion.

The outcomes examination displayed by utilizing term of current proportion in view of

liquidity proportion, TNB in year 2018 is superior to year 2017 on the grounds that in year
2018, TNB ready to guarantee 1.28 seasons of transient lenders that covered by ebb and flow
resources contrasted with 1.19 times in year 2017. Then, the outcomes examination of new
working capital term, we ready to see TNB in year 2018 is better contrasted with year 2017,
on the grounds that TNB in year 2018 is somewhat fluid and ready to meet its transient
commitment as it comes due. It likewise shows part of interest in current resources is funded
with long haul supporting. From this results examination, we can close TNB monetary
execution in year 2018 is better on the grounds that have higher capacity to pay its transient
commitment.

Besides, the outcomes examination displayed by utilizing term of stock turnover in light of
action proportion, TNB in year 2018 is all the more really in utilizing its stock to create deal
by 94.12 times is better contrasted with 13.91 times in year 2017. Then, for the outcome
examination for complete resources turnover term, we can appear TNB in year 2018 is
superior to in year 2017 in light of the fact that, this year TNB is more adequacy in utilizing
its resources and dealing with its all too by 0.38 times. From this results examination, we can
close TNB monetary execution in 2018 is better on the grounds that have higher capacity to
quantify proficiency of its venture choice and additionally great in use its resources.

Thirdly, the outcomes examination displayed by utilizing term of obligation proportion term
in view of influence proportion, TNB in year 2017 is all the more successfully utilizing its
stock to create deal by 13% is superior to 17.29 percent in year 2018. Then, for the outcomes
examination of obligation to value proportion term, we can appear to be that TNB in year
2017 is shows that lenders supplier RM0.29 for RM1 give by proprietor. This year TNB
leaser position is safer contrasted with proprietor. From this outcome examination, we can
finish up TNB in year 2017 have higher capacity to quantify its penchant to involving
obligation in supporting its resources and its monetary gamble.

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Fourthly, the outcomes examination displayed by utilizing term of return on resources in light
of benefit proportion, TNB in year 2018 by 2.57 percent is better contrast with year 2017, on
the grounds that this year TNB ready to control cost its activity and ready to give more return.
Then, the outcomes examination displayed for return on value term, TNB in year 2018 is
more ready to amplify the proprietor abundance analyze in year 2017. From this results
examination, we can finish up TNB monetary execution in 2018 is better in light of the fact
that TNB have higher capacity to gauge viability in working capital administration, venture
choices, supporting choices, and ready to show the productivity of its general business
activity.

From the general aftereffect of the examination monetary execution, we can finish up
monetary execution of Tenaga Nasional Berhad in year 2018 is more viability contrast with
2017 yet this is for three monetary proportion in particular. The monetary proportion that is
excluded is influence proportion on the grounds that in year 2018, TNB is less great in
dealing with its obligation and have high monetary gamble.

Finally, from this review, we realize that TNB ought to concentration to dealing with its
obligation and concentration to meeting their advantage installment commitment and
persistent to create more deal or incomes consistently.

3.1 LIQUIDITY RATIO

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In term of current ratio TNB on 2018 has better ability to pay short term obligation with or
without the inventory. Also, it cannot relying on sale and prepaid.

3.2 ACTIVITY RATIO

In term of activity ratio of TNB in year of 2018 the firm is effectively managing account
receivable and able to utilize overall assests compare to 2017

3.3 LEVERAGE RATIO

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In term of leverage ratio TNB in 2017 has good managing its debt and low on financial risk
and also good in meeting the interest payment obligation.

4.0 RATIO ANALYSIS FOR TELEKOM MALAYSIA

Stock determination is an option in contrast to specialized examination. Therefore, it is a

strategy for evaluating security by taking a gander at market conduct produced by insights, as
past costs and volumes. Specialized investigators oftentimes use outlines and different
devices to detect patterns that might demonstrate potential way of behaving instead of
endeavoring to decide a security's inborn worth. Subsequently, analyzing authentic
information on costs and volumes could likewise include making forecasts about future costs
in light of patterns. To get at a good guess of the financial and business components,
examination isn't required. All things being equal, all the data expected to anticipate future
costs is contained in the arrangement of past costs.

Moreover, specialized investigation incorporates the assessment of demand or market

movement through assessment of the expenses and volumes of exchanged resources. It is the
study of recording the genuine history of exchange. These detailed cost and volume shifts are
summed up to realistic arrangements subsequent to being meant different information sorts,
like midpoints. Specialized examinations are in this manner a kind of monetary examination
that utilizes designs in market information to distinguish patterns and make expectations. By
breaking down measurable examples got from business action, for example, value change and
volume, this business procedure is likewise used to appraise venture and distinguish market
possibilities.

In fact, technical examination is really a clear cycle with devices accessible to everybody,
from beginner retail brokers to prepared mutual funds supervisors. Furthermore, mechanical
instruments are less complex to investigate than basic estimations, whose translation
frequently requires an extended time of thorough assessment. The cost on which it is proper
to assemble any gauge of gains or misfortunes is the solitary needle in the specialized dealer's
compass, considering that specialized examination exclusively relies upon market activity. A
specialized technique can assist financial backers with understanding when to enter and leave

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the market, which is one of the advantages of specialized analysis. Other than that,
adaptability and flexibility allude to any global stock trade, where mechanical investigation
might be utilized while relevant to the different time aspect is where specialized examination
might be utilized during an exchanging day and have the option to make minute or hourly
outlines.

4.1 LIQUIDITY RATIO

Current proportion is at times utilized in estimating relationship inside current resources and
current liabilities which is whether the corporate is in a position or to not pay their
momentary commitment. This ongoing proportion is determined by this resources partition
by this liabilities. At the point when the ongoing proportion sum over 1 which implies the
corporate has more grounded position in their monetary and enough current resources for
conceal its ongoing liabilities which likewise called momentary commitments. In this way, in
year 2021, current proportion in Telekom Malaysia Organization is over multiple times with
the sum is 1.14 times.

In the meantime in year 2020,Telekom Malaysia Organization has recorded its ongoing
proportion with the number 1.28 times. As we will see both year has recorded the number
which is over multiple times. In light of the correlation somewhere in the range of 2021 and
2020 , the liquidity proportion has decline by 0.14 times. And that implies the Telekom
Malaysia Organization has run out of their liquidity resources which is resources that might
be was money to pay their momentary commitment or current liabilities soon. Telekom
Malaysia Organization can defeat this issue by draw in additional financial backers to prompt
higher capital to broaden their pay.

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4.2 MARKET VALUE RATIO

Dividend per share is about the sum of dividend that has been declared for each share that has
been issued. Dividend per share is employed to live the number of dividend which may be
receive when someone attempt to buy the firm’s stock so the firm can estimate what quantity
they can pay to their shareholders from the web profit that they need generated. This amount
of dividend per share is calculated by the quantity of dividend paid to common stockholders
divided by number of stock which is outstanding. For the year 2021 the dividend per share
that have produced by Telekom Malaysia Berhad are 0.15 sen for the 2020, the dividend per
share is 0.17 sen. Based on that year, the dividend per share had decreased by 0.02 sen. This
means that they can not consistent to produce their profit with their current finances that
threatened by economic downward and temporary market.

4.3 LEVERAGE RATIO

Obligation to value proportion could mean a monetary that contrasts an organization's all out
obligation and complete value. Obligation to value proportion shows that organization
funding come from lender and financial backers. To work out that, we utilized a complete risk
then partition with all out value. the accompanying proportion that we get from the
demonstrates that organization utilize more credit advance than getting benefit by the

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investor. It very well may be not excessively perfect on the off chance that we get most
elevated in bank against financial backer. Model supporting for Telekom Malaysia
Organization, in year 2021, they got 1.37 seasons of obligation to value proportion while in
2020 they got 1.65 times. It shows that in year 2020 Telekom Malaysia Organization more
obligation to pay think about against financial backer. Then the organization change their
obligation to be better in year 2021.

5.0 EVALUATION OF THE COMPANIES CAPITAL STRUCTURE

As per the February 2020 offer cost patterns. In contrast with February 2020, the graph
pattern in February 2021 is unique. In February 2020, the pattern was bullish, while in
February 2021, it was negative pattern.

At the point when the cost of rabbits is rising, the term is bullish, and when the cost is falling,
the term is negative. At the point when the pattern is bullish or negative, there are various
things we as financial backers might do. At the point when there is a descending pattern, we
could survey our speculation methodology. Each market cycle will most likely see some high
points and low points in the stock's cost, maybe inside merely seconds. Consequently,
regardless of whether we just purchase more stocks, we might redesign our venture system to
satisfy our objectives. Then, when the cost is low, we can basically buy more offers. The
stock cost might decline because of specific circumstances, for example, terrible news and an
organization droop, yet this frequently doesn't keep going extremely lengthy. In this way, it is
fitting to purchase then as opposed to when the cost goes up once more. To wrap things up,
rebalancing our portfolio is something we might do when the pattern is unfavorable. We can
utilize resource distribution venture methods, what split our speculation between various
instruments including stocks, bonds, and favored shares.

Other than that, there is an alternate when bullish patterns are coming. Coming up next are a
few things a financial backer can do while share costs are rising. As financial backers, we can
just hold the cost when it is ascending for a foreordained timeframe. That's what the
explanation is, contingent upon our examination of the market, the offer cost might rise
further. To get more cash, we need to sell the stock at the greatest cost. To wrap things up, in
the event that we accept the offer cost won't increment for some time, we may simply sell our

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part in the stock. Considering that the offer has proactively arrived at its top, this is the best
time.

In prior February where on 5 February, we can buy back our portion with RM 6,300 on the
grounds that in that day cost is diminished or negative pattern which gives us to add our
portion in TM organization. In that day as well, We can continue to hold our portion until 8
February on the grounds that the pattern is vertically for the 3 days. Coming for that day as
well, we want to hold our portion from 9 February for quite a while until 21 February and sell
it at 6,303 in light of the fact that the cost development after that day pattern is going to
descending or negative. As an investor, we really want to buy the offer at the open market
from 22 February until 4 Walk in light of the fact that the cost has gone down to RM 5,950
this is on the grounds that the cost shows a slight down in the market so we can build our
portion position in that organization.

After that day, we can hold our portion for quite a while 4 Walk to 18 Walk with the pattern in
that date is normal so difficult to anticipate which time we can sell our portion. In 18 walk,
we can sell our portion at RM 5,950 which mean after that day, the pattern is going to down
so we don't had an advantage with exchange that date however we can repurchase it back on
prior April 1. In addition, Contrasted and the 2020 the pattern beginning to negative from
January to walk were somewhat descending than 2021 and the perfect time to sell the offers
is on 20 January with selling cost is RM 4,051.

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6.0 SUMMARY AND CONCLUSION

The end that we can produced using the examination pattern proportion is that Tenaga
Nasional Berhad is in a great shape. This is on the grounds that the monetary proportions
shown that they have an improvement from 2017 to 2018. The level of expanding is
additionally high and this shown that the organization had no issues for their monetary. And
on the off chance that, they need to improve to turn out to be more compelling they can spend
something else for their resources for get more income for what's in store.

Tenaga Nasional Berhad enjoy a great deal of benefits in venture contrasted with the others
organization. This is on the grounds that the monetary of organization generally increment
and stable in doing their business. This shown that this organization have generally safe to
misfortune and all the financial backer ready to put resources into the organization. And the
organization will get more benefit and simple to fabricated the business in long haul of
period. We truly prescribed to the financial backer who need to contribute with stable
monetary organization to put resources into Tenaga Nasional Berhad.

Major examination really tries to decide the stock's basic worth utilizing data from the deals,
ventures, development potential, and business climate. They will anticipate plausible cost
developments while as yet utilizing past market conduct and stock cost patterns for
specialized investigation. Similarly as with money growth strategies, every strategy has allies
and doubters. There could be different pathways accessible to different individuals. This has
shown the worth of principal research in accomplishing positive outcomes. Moreover,
assuming the exploration is okay, crucial examination can beat specialized examination with
regards to quality. It was noted in this exploration that specialized examination didn't
outperform key investigation. It attested that specialized examination is more productive than
basic investigation considering the discoveries. This might be made sense of by the way that
various ventures and countries are seeing various outcomes.

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REFERENCES

1. https://www.tnb.com.my/
2. https://www.tnb.com.my/doing-business-with-tnb/energy-ventures/
https://en.wikipedia.org/wiki/Tenaga_Nasional

3. Abu Bakar, Abdul Halim(2010),The financial performance: a case study of Tenaga

Nasional Berhad. Retrieved from: http://ir.uitm.edu.my/id/eprint/24575

4. Segal, T. (2020, December 14). Fundamental Analysis. Retrieved, from

https://www.investopedia.com/terms/f/fundamentalanalysis.asp

5. https://www.morningstar.com/stocks/xkls/4863/dividends

6. Boyte-White, C. (2020, October 07). How to Calculate Return on Assets (ROA) With
Examples. Retrieved from https://www.investopedia.com/ask/answers/031215/what-
formula-calculating-return- assets-roa.asp

7. Hayes, A. (2021, January 05). Technical Analysis.

https://www.bursamarketplace.com/mkt/themarket/stock/TLMM/charts

8. Chen, J. (2020, August 29). Line Chart Definition. Retrieved from

https://www.investopedia.com/terms/l/linechart.asp

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