Welcome. YTL Power share price is at depressed level now due to general weak market sentiments and foreign funds turning nett sellers of Bursa since early June 2022. But I think there are enough reasons to hold onto YTL Power shares to ride on its earnings rebound in coming months.

Furthermore, with inflation running high and food stalls & restaurants raising prices, consumers may cut down on eating / dining out, and cook more at home to save costs. AEON is offering essential grocery items in RM50 or RM100 packs with great discounts, to help consumers reducing costs.

ya food stuffs sold at pasar pagi or pasar malam are not cheap anymore, AEON supermarkets offer similar fresh quality food at similar prices or cheaper. One fresh whole chicken for just RM8.90 per bird, anyone?

PowerSeraya should not be benefiting from the electricity tariff hikes, nor suffering any disadvantage, as they typically hedge almost 100% of the fuel cost requirements. The electricity tariff hike is just to pass on the higher fuel costs.

The market wants to push AEON share price to year low to commemorate the last day of MD Samsuddin and first day of new MW Ono Keiji

YTLPower, being a defensive counter, offers dividend yields of over 7.0% p.a. Which stock else could offer higher?

After all, if not utilities and retails stocks, what else to buy and hold in this weak market?
Plantation stocks are having a roller coaster ride following big swings in CPO prices, tech stocks are crashing down (eg. MPI has dropped below RM30.00), glove stocks are seeing no sigh of bottoming, penny stocks attract less trading interests in the weak market.

I hope the earnings rebound from PowerSeraya and new earnings contribution from its 5G business will be able to cover the higher interest costs. All in, it is still good to hold on to ride on its earnings recovery phase and explosive earnings rebounds from PowerSeraya and 5G business.

Market sentiment is weak due to US markets crashing down and US Fed raising interest rates aggressively, causing fears of a recession. Fortunately the various businesses of YTL Power are recession proof.
The only setback is the rising interest costs due to increasing interest rates in the UK. Based on the debt amount of RM27.8bn as of 31 Mar 2022, a 25 basis point increase in interest rates will result in RM69.5m higher interest expenses for YTLPower.
We need to continue monitoring the impact of this in coming months.

Be patient and be positive.
I know many investors have got stuck in this counter and YTL Power for too long. I have a friend who lost half of the value invested in YTLPower at around RM1.50 few years back. If you have been holding them for months, just hold for another few more months then you will see the share price rebound will finally be coming.

1.67 coming soon!

WHile he was in charge of AEON in Thailand, he injected new concepts into retails/supermarket there and opened up hundreds of smaller-sized supermarket outlets for AEON in few years.

Hope the new CEO Ono Keiji will inject new breath into AEON Co (M) business and corporate structure. He has successfully expanded AEON shopping malls in Cambodia when he served as president of AEON Cambodia

good luck then!

right, next resistance is at 1.65-1.69

YTLPower just broke out resistance 0.775. Should we chase, sweetchocalates?
Then when should we sell before you start crashing it down?

Sweetchocalates seems to have bitten some sour plum. Not sure what he was trying to say. Was he trying to ask people to buy now as there might be a technical breakout? Is he part of the operator who tries to manipulate share prices?
Good luck in speculating

You can see from the chart that PowerSeraya generating capacity reduced in 1H2021 as they retired some of the oil oil-fired power units. The completion of Tuaspring acquisition is timely to replace these oil machines.

Tuaspring power plant should have continued operating though at lower operating rates in 2020-2021 when it was undergoing ownership change from Hyflux to PowerSeraya. It should be able to operate at full capacity once PowerSeraya takes over.

yes we can expect a good quarter ended June 2022, may be as good as Dec 2021 quarter

not sure, could be due to rerating of retails sector as other retails stocks like BJfood, Bonia and Padini were all up

correct, the desalination plant used electricity from this Tuaspring power plant when they were under the same owner then. Now it can buy electricity from PowerSeraya.

https://klse.i3investor.com/web/blog/detail/dragon328/2022-06-02-story-h1624194465-YTL_Power_Timely_Completion_of_Tuaspring_Acquisition_to_spur_Explosive_

reposting

I understand that this Tuaspring gas turbine has been mothballed and can be re-activated within weeks. We can expect it to contribute significantly to YTLPI from July 2022 or FY2023.

To compete in Singapore competitive electricity market, power generation efficiency is the key, more so when gas prices are high now. This 396MW efficient capacity from Tuaspring will add to PowerSeraya's efficient capacity of roughly 2,000MW, enabling it to compete with other power companies.

MIDF stated a 16.5% increase in power capacity of PowerSeraya after the completion of Tuaspring acquisition, that is true for total registered capacity.
My earlier stated 20% capacity increase was for effective capacity, which is the new F-class combined-cycle gas turbine. PowerSeraya has other open-cycled gas turbine and old oil-fired steam turbines which are less efficient.

I understand that these 5G plans (so cheap at RM58/mth on unlimited data on 5G speed up to 668Mbps) are selling like hot cakes on Shopee

skph888, thanks for sharing. But what F&B business is Rex exactly in?
Any sign of its business registering good growth?

Another good initiative by AEON

https://www.theedgemarkets.com/article/aeon-co-launches-100day-jimat-poket-campaign-tackle-rising-cost-living

https://klse.i3investor.com/web/blog/detail/dragon328/2022-06-02-story-h1624194465-YTL_Power_Timely_Completion_of_Tuaspring_Acquisition_to_spur_Explosive_

It looks like profit taking and share price pressing is over, i.e. insiders have collected enough cheap tickets

Skoh888, great! I also added a lot at 1.41-1.43

Explosive surge coming

explosive earnings growth from Singapore after this acquisition

https://klse.i3investor.com/web/blog/detail/dragon328/2022-06-02-story-h1624194465-YTL_Power_Timely_Completion_of_Tuaspring_Acquisition_to_spur_Explosive_

High oil prices may help the Jordan project to kick off faster as this project will use the indigenous fuel (oil shale) to generate power. Jordan has been relying on imported gas and oil for power generation for years, hence the idea of starting this oil share-fired power plant to help Jordan lower the fuel cost and forex losses from fuel import.

https://klse.i3investor.com/web/blog/detail/dragon328/2022-05-29-story-h1624108871-YTL_Corp_Q3FY2022_commendable_with_promising_outlook_in_Utilities_Hospi

I think the management might have made some impairment loss on Indonesia Tanjung Jati project since the new coal project will unlikely get financing as international lenders focus on renewable projects.
I suspect there was some impairment loss taken on Jordan project as it has been sort of stalled for several months pending the arbitration case. I won't be surprised if they have done that in Q3. They may be able to write it back as and when the Jordan project resumes.

The investment holding segment should have recorded some losses after striping out the disposal gain of Electranet. I am not sure of the quantum of losses and where these came from.
I suspect part of the losses could be for corporate social responsibilities. Another possible source of losses might be from Jordan project which is suspended pending an arbitration court case, incurring project costs at site and legal expenses for the arbitration case.
Jawa Power might have contributed lower earnings during the quarter, not too sure

@Observatory, I also feel that the March quarterly result was a little below expectation. One culprit was Wessex Waters contributing less earnings but it was well covered by a rebound in earnings from PowerSeraya.
Another weak link was in Yes telco segment that recorded higher losses, I hope the 5G venture will help turn around this segment soon.

Frankly speaking, I would also prefer YTLPI to divest at least some stakes in its telco business which has been dragging down its bottom line for years. Now there is a good chance for the telco segment to turn around with the 5G roll-out, it makes more sense now to monetise part of the investment in this 5G business. I think some Korean or Japanese telcos would be interested.

3. The RM86m loss from the telco segment is discouraging. The company said it was due to lower project revenue recorded, which I am not sure what it means.
On the 5G business, I read that the government has just agreed on equal stakes in the DNS with the 3 major telcos. But this has not actually deterred YTL Yes from rolling out its 5G services and Yes is the first telco to roll that out. Feedback to me indicated that Yes has got encouraging response to its 5G business and new subscribers have increased by hundreds of thousands since its launch.
As to how much more capital to be sunk into this 5G business, I do not expect much other than YTL's subscription to the equity stake in DNS. While other bigger telcos are trying to grab a bigger stake in DNS, it is not much left for YTL to subscribe anyway.
As to how this equity game will pan out and will affect the 5G business, I do not know but I would expect still equal assess to the 5G network, hence YTL Yes will not be disadvantaged anyway.

2. Seasonality impacts on water supply & sewerage revenue? I am not entirely sure what it means, but I suspect it has to do with the water consumption patterns in different seasons in Wessex. It is also affected by any new contracts awarded to non-household retail market, any new housing projects during the season, and the timing of embarking on certain water infrastructure projects. Profitability is affected by any subsidy in the installation of water meters and timing of claim for any new capital projects. Not 100% sure but that is my understanding.

@Observatory, let me try to answer your questions one by one:
1. The Multi-Utilities business means PowerSeraya business in the competitive electricity market in Singapore. There is an electricity pool market in Singapore where generating companies bid their offer price and quantity of electricity into and buyers buy electricity from. In Singapore, the electricity pool clears the electricity prices based on the bids from generating companies and total demand from buyers every 30 minutes. Some other markets in other countries clear the price every hour. When the supply is tight, then the pool will clear an electricity price very high. When there is oversupply, then the pool price will clear low. Generating companies whose bids get matched with demand will get paid the pool price cleared for each 30 minutes, and buyers will pay the same price to the pool operator who is a clearing house.

Indonesia Jawa Power continues operating at full capacity and contributing steady earnings, but the new Tanjung Jati may have issues as nowadays international lenders are reluctant to lend to coal power plant, but more to renewable projects. No update yet on Jordan project still pending the arbitration court case.

Me too, yesterday added at 1.43 today more at 1.45

YTL Corp normally declares dividend at final quarter ended 30 June

Ya decent set of results. Only cement division a bit disappointing due to high coal prices and electricity prices. But I find out from market that cement prices have gone up to above RM300 per tonne from RM270 per tonne during Q3, hopefully it will help to mitigate the high coal prices in Q4.

https://klse.i3investor.com/web/blog/detail/dragon328/2022-05-26-story-h1623448878-YTL_Power_Q3FY2022_Better_Outlook_in_Singapore_and_Increasing_Dividends

AEON has already raised minimum wage from RM1200 to RM1500 since 1 Jan 2022, so the effect of higher wage has already been reflected in its March quarterly result, at least partially