KUALA LUMPUR (April 29): Shares of YTL Power International Bhd and YTL Corp Bhd rose to fresh highs on Monday as investors piled on stocks with exposure in artificial intelligence (AI).

YTL Power, which last year secured Nvidia chips for its upcoming Johor data centre, rose 39 sen or 8.82% to trade at its intra-day high of RM4.81 at noon market break.

Trading volume rose to 31.98 million shares at noon, or 92% of its two-month average daily volume of 34.84 million shares.

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YTL Corp, which owns 48.98% in YTL Power, also rose by 5.61% or 17 sen to its intra-day high of RM3.20. Some 34.5 million shares changed hands in the morning session, or 86% of its two-month volume of 39.9 million shares.

The rally in both stocks on Monday contributed to the 6.54% gain in Malaysia’ benchmark KLCI index, currently trading near its two-year high of 1,581.7 points.

YTL Power is currently the 10th largest company on the KLCI, with a market capitalisation of RM39.04 billion, while YTL Corp is in 13th place with a RM35.1 billion market capitalisation.

Malaysia’s tech stocks were largely in the green as Friday’s gains in the US were led by tech-heavy Nasdaq’s 2.03% jump amid optimism for AI-driven earnings growth at companies such as Alphabet Inc and Microsoft Corp, which came in better than expected.

Alphabet rose 10%, Nvidia Corp rose 6%, while Microsoft rose 2% on Friday.

At its current share price, YTL Power’s stake held by YTL Corp is valued at around RM19.1 billion, or close to 55% of YTL Corp’s own market capitalisation of RM35.1 billion, at the time of writing.

YTL Power is currently developing the YTL Green Data Centre Park in Kulai, Johor, the first phase of which is expected to accommodate up to 72MW capacity, with Singapore’s Sea Ltd along with its subsidiaries Shopee and Garena as anchor customers.

YTL Corp holds a 48.98% stake in YTL Power. It also owns an indirect 78.58% stake in Malayan Cement Bhd and a 58.63% stake in YTL Hospitality REIT.

At RM4.81, YTL Power is trading at above consensus target price (TP) of RM4.81. Its TP range between RM4 and RM5.55 among 11 analysts covering the company.

Similarly, YTL Corp is trading above its consensus TP of RM2.87 among four analysts, with individual TPs between RM2.27 and RM3.33. 

https://www.theedgemarkets.com/node/709726