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

AEON Annual Report 2021 said - True to the spirit of AEON Sayap Bagimu, AEON have recently announced a major initiative as it adjusted AEON’s minimum wage upwards to RM1,500 from RM1,200 a month in recognising that ther AEON People are the most important asset and who are critical for the long-term sustainability of the organisation. This change took effect from 1 January 2022, and it has benefitted 2,738 AEON People, indicating its commitment to prioritising the welfare of AEON People.

Some of you can read technicals charts better, please advise time of entry

AEON share price is over sold now with RSI indicator at year low.

I will call for patience. Though AEON profit margin may suffer a small setback while it delays price hikes of certain product sales, but it will help a lot to retain loyal customers and help to clear off inventory at old prices.
The management effort to help curb inflation and cut operating costs to maintain profitability should be applauded. I see this as the preferred way to fight inflation while retaining loyal customers by delivering extra customer services. It will help its retails business to gain market shares and we shall see such effort to bear fruits in next few quarters.

It could be due to a general sector downgrade as fears of food inflation creeps in.
AEON has dropped 15% from recent peak of 1.69
BJFood down 15% from recent peak of 4.85
Padini dropped 19% from recent peak of 3.58
Bonia down 10% from recent peak
InNature down 13%

Trading volume of AEON has been unusually high at 4m to 6m per day since early May, compared to average 1m in Jan-Mar 2022. This operator pushed the share price to year high of RM1.69 only to push it down again to 1.43 now. Not sure why.

some operator is manipulating the share price. Next support 1.41. Accumulate slowly

Title amended. Good suggestion.

thanks kelvin61. Agree with you that sooner or later the share price will reflect the intrinsic value of Bplant assets. As its major shareholder Boustead Holdings need cash to pare down borrowings, we can surely expect BPlant to gradually monetise its landbank to distribute more dividends to shareholders.

AEON shareholders will not be getting the new REIT shares directly but will get windfall dividends from the listing proceeds and through AEON still holding majority stakes in the REIT. Assuming AEON lists up 30% stakes of the REIT in the IPO and hold 70% majority, then AEON will be receiving RM3.0 billion of cash from listing proceeds and its 70% stakes in the REIT will be worth RM7.0 billion.
If AEON sells 49% stakes in the REIT listing, then it will receive cash proceeds of RM4.9 billion while its 51% stakes in the REIT will be worth RM5.1 billion.
I was assuming that AEON would list up 45% stakes and receive cash proceeds of RM4.5 billion, and assumed that AEON would use RM300m to reduce borrowings and the rest RM4.2 billion to be distributed as special dividend of RM3.00 per share.

Travestor, the title was a little misleading. It was meant to say that if AEON injects all its malls into a REIT, the REIT will be worth RM10 billion and AEON will be worth RM12.1 billion in sum-of-parts valuation. Compared to its current market capitalisation of RM2.1 billion, essentially AEON shareholders are getting the new REIT shares for free through indirect holdings of AEON Bhd.

If you have done your homework and are confident with the company prospects, you will make money sooner or later. Buy low and sell high. Buy when shorter term traders or speculative parties sell it, and sell it when retailers chase it high like in the case of BJFood.

Why there are so many people lose money in the stock market is because they speculate rather than invest properly. 9 out of 10 retailers who chased Serba Dinamik high to 18 sen after it resumed trading have lost money and I bet none of them understood what really happened inside the company.

Travesor, nobody knows when AEON will inject its malls into a REIT, not even its CEO and management. It is dictated by the major shareholder depending on a number of factors - their expansion plan over next 3 years, the capital market conditions, the confidence of the investment banker to solicit interests from cornerstone investors, the proposed valuation, etc.
My advice is that do not speculate on the timing but just accumulate while it is low now. Even though it does not materialise this year, the share price will still go up on improving business outlook.

Anyway I have sold off my BJfood holdings above RM4.60 and swifted to AEON now.

Using the same example as BJFood, lets look at AEON FY2021 financials:

Revenue RM3,630m
EBITDA RM725m
Depreciation (RM465m)
EBIT RM260m
Interest (RM129m)
Pretax Prodit RM131m

Now what if AEON revenue increases by 28% in next 3 years (8% growth p.a.) to RM4,660m by FY2025 as what I forecast in my 2nd article? EBITDA will increase by 28% to RM935m, EBIT will increase 80% to RM470m and pretax profit will jump 177% to RM363m. The compounding effect is amazing.

Once you have done your homework, you will have greater confidence in what you invest in and make better decision to make the right move. Like in the case of AEON, I am adding it while some party presses it down, as I believe that it will rebound once this party exhausts its selling. A deeply undervalued stock will not stay low for too long.
A good example was BJFood. When I first recommended it, it was trading at RM2.00 level and got pressed down to as low as RM1.81 in the following weeks, but after that what happened everybody knows. The share price has more than doubled up to as high as RM4.80.
People were skeptical of my recommendation then as BJFood was reporting dismayed net profit pressed down by high depreciation charges and continued losses in Kenny Rogers. But once Starbucks sales increased after MCO and Kenny Rogers turned around, you can see that net profit jumped by bounds after deducting off fixed depreciation charges. For instance,
Q3FY2022 Q3FY2021
Revenue RM246m RM182m +35%
EBITDA RM83m RM 56m +48%
depreciation (30m) (30m)
EBIT RM 52m RM 26m +>100%

You can see that though revenue increased by 35% only but EBIT jumped over 100% as depreciation charge is fixed (or small increased).
AEON will be a similar case like BJFood but a few times larger as its non-cash depreciation charge for the property management segment is almost RM350 million a year.

I pay attention to details as I have been trained in my corporate life then. And I believe one should really study the company aspects well especially its financials in order to have a good understanding of what happened in the company past quarter and to have reasonable confidence to project what will come next.

I am looking at IGBB but will see its March qtrly result first before I decide if it is worth a bet.

I am not good at technical analysis, often got it all wrong. Just like in the case of AEON, one would have expected it to go further after it breached resistance of RM1.65 to close at RM1.66 last Wednesday if he/she looked at the technical chart, but it went down the next day and dropped over 10% in the next few days.
It is hence risky to purely look at the chart to chase a stock as some operator will crash you down, as they have better technical chartists to manipulate the movements of the stocks.

I do look at technical charts mainly to get a sense of a good timing of entry into a stock or when to take profit for shorter term trades, but I rely more on fundamental analysis to gauge if I buy a stock or not.

You will notice from AEON quarterly reports and Annual Reports that the company itself was not able to clearly seggregate the costs for each of these segments, hence some Unallocated Expenses and a huge lease liabilities payment.
So in order for AEON to inject its malls into a REIT, it will need to first sort out the allocation of these Unallocated Expenses and lease liabilities payments, in order to maximise the cashflows and profits at the REIT and minimise profits at the holding company level to minimise income tax payment (as a REIT does not pay income tax but the holding company pays higher than usual income tax rates).

skoh888, thanks for your support. Yes the articles are a bit long as there is too much to share as background info in the first place. I would like to give readers a full picture of the company in terms of its financials, assets, business segments and prospects.
In the case of AEON, the financials are a bit unique and tricky. It took me quite some time and hard work to dissect its financials into the 2 business segments: (1) retailing and (2) property management services, and then to make a reasonable projection of its cashflows for each of the segments.

What I have done is to share my honest opinion on this stock and its huge potential. Now that someone is pressing down the share price is really good for me to add even more at low prices. I do not want to speculate on why these people are so desperately selling down the share, nor when AEON will inject its malls into a REIT, but rather just buy on what I believe in based on its current form of business fundamentals and strong cash flows. When the corporate exercise comes, then I know I will make a lot of money.