0154 GMT - The Malaysian utilities sector's outlook appears robust amid increasing electricity demand from data centers in 2025, Kenanga IB analyst Teh Kian Yeong says in a note. The sector could see defensive earnings and steady cash flows from electricity transmission assets, which underpin dividend yields of up to 3%, he reckons. Tenaga Nasional is Kenanga's top pick, benefiting from rising demand from new data centers, improved plant efficiency and increased capital expenditure on electricity transmission and distribution, which could drive higher earnings, he adds. Kenanga maintains an overweight rating on Malaysian utilities sector and also favors YTL Power International for its ongoing execution of AI data center initiatives. (yingxian.wong@wsj.com)
(END) Dow Jones Newswires
January 05, 2025 20:54 ET (01:54 GMT)
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