The decision is in favor of TNB, what else to worry about.
Maybank Investment Bank (Maybank IB) maintained a ‘hold’ rating on shares of Tenaga Nasional Bhd (TNB) despite the issue of a tax dispute with the Inland Revenue Board (IRB).
For information, the High Court has allowed a judicial review application against TNB last Tuesday to set aside the IRB's notice on the RM1.8 billion tax assessment for 2018.
Subsequently, the High Court had ruled that TNB had carried on the electrical business and as such, it was entitled to claim reinvestment allowance on capital expenditure incurred in 2018.
Maybank IB's note noted that the decision had bode well for the balance of TNB's disputes and other similar disputes, thus reducing long -standing dependencies.
Meanwhile, Maybank maintained TNB's share price target at RM9.60 and at noon yesterday its shares fell 2 sen to RM9.24 with 1.02 million units traded.
