Got people buy at 1.85? System fault?

source from CIMB

Target RM2.42 (Stock Rating: ADD)

After many years of expanding its global footprint abroad, YTL has shifted its focus back to the home front to reap the value of its investments across the nation's infrastructure cycle, spurred on by the country's Economic Transformation Programme. We upgrade our FY15/16 EPS forecasts by 6-8% as we factor in the construction earnings from the recent Track 4A concession to a consortium led by YTL Power. Our target price, based on a 20% discount to RNAV, is raised by 24% as we re-value YTL's cement business on EV/EBITDA from EV/tonne to better reflect its position as a key growth catalyst. YTL remains an Add and is one of our top picks.

We upgrade our FY15/16 EPS forecasts by 6-8% as we factor in the construction earnings from the recent Track 4A concession to a consortium led by YTL Power. Our target price, based on a 20% discount to RNAV, is raised by 24% as we re-value YTL's cement business on EV/EBITDA from EV/tonne to better reflect its position as a key growth catalyst. YTL remains an Add and is one of our top picks.

Shifting from abroad to opportunities at home

Our recent meetings with management underscored the theme of YTL shifting its focus from growth-via-acquisition abroad to growth-via-execution at home. While quantitative easing had crowded out the commercial returns of prospective M&A deals, such as YTL's attempted bid on London's Stansted Airport, opportunities at home grew in abundance on the back of initiatives under the country's Economic Transformation Programme (ETP).

Escalation of orderbook

Construction is poised to be a new powerful earnings catalyst for YTL, kicking off with the recent Track 4A IPP award to a consortium led by YTL Power. YTL should benefit from the construction of the RM6bn project, and its orderbook could swell further with the possible RM8bn Express Rail Link (ERL) extension to Melaka and the RM30bn high speed rail (HSR) project to Singapore.

Strong earnings upgrade momentum

At 10.3x FY15 P/E, YTL's valuations are the cheapest among the conglomerates under our coverage not just in Malaysia but in the region. Valuations are compelling, taking into account further potential earnings upside coming from a growing orderbook, higher passenger numbers on the ERL to KLIA2, and the turnaround of the 4G mobile broadband division with the roll out of TD-LTE services over the next two years.

YTL Corp Urges Asian Sovereign Wealth Funds To Invest 30 Per Cent In Infrastructure

KUALA LUMPUR, June 3 (Bernama) -- YTL Corp Bhd's Group Managing Director Tan Sri Dr Francis Yeoh Sock Ping has called for at least 30 per cent of sovereign wealth funds in Asia to be invested for infrastructure development.

The move will help Asian countries provide efficient infrastructure to the people at the right price as well as boost national productivity.

However, he said most Asian countries did not produce the right amount of infrastructure as they should despite the growing wealth and high level of savings.

The local government, he said, is currently making sure that the productivity towards infrastructure is being done, such as airport and railways, in order to cater to the increasing demand from consumers.

"Without productivity, it's like we are 'adding fuel to the fire', and as a result, we can never catch up (with the rapid development)," he said at the seventh Global Malaysia Series' talk here Tuesday.

To do that, he said every government needed to introduce a transparent and coherent relative framework, in terms of open bidding for contracts and others.

The move would help accelerate countries' economic advancement, he said, alluding to the nation's aim to achieve a high-income status by 2020.

Meanwhile, Yeoh declined to comment on the direct-tender award by the Energy Commission (EC).

"I just want to answer questions regarding the event today," he said.

YTL Corp's wholly-owned subsidiary, YTL Power International Bhd was part of a consortium that was selected by the EC for a power plant project in Pasir Gudang, Johor.

The commission said on Saturday the group was picked, through the direct-tender process, based on their ability to offer competitive rates in the recently concluded tender exercises.

It was reported that the decision on direct negotiation was expected to help the commission to finalise the contract quickly and speed up the delivery of the power plant.

The yet-to-be completed Southern link, which links Lenggeng in Negeri Sembilan and Yong Peng in Johor, will provide the interconnection between new power plant and the national grid.

The construction, which will cost a combined RM8 billion to RM10 billion, was expected to start by the middle of next year.

The commission explained the selection of the procurement methodology hinged on the date when the plant should be operational, the time required for the development and completion of the plant, availability of a suitable site to meet the commercial operation date requirement, and the time required to adhere to environmental and regulatory requirements.

So far, the commission had awarded contracts to build Track 1, 2, 3A and 3B through an open tender process.

-- BERNAMA

http://www.themalaymailonline.com/malaysia/article/crony-capitalism-in-malaysia-has-to-go-son-of-ytl-founder-says

I think lately there are a lot of good news on YTL. However, the price isn't moving

I think he press the wrong button.

absorb all at 1.71. Walau. seldom lo. actually I'm not a frequent visitor

Not selling la! Just curious on how things works!

Walau!

I'm wondering who is so pessimist and who is so optimistic on this company?

Target RM1.94 (Stock Rating: ADD)

We are positively surprised by talk of an RM8bn plan by the government to extend the Express Rail Link (ERL) service from KLIA to Malacca. Any such plan could help YTL secure the high-speed rail (HSR) project to Singapore, as the extension would represent a major portion of that contract. We make no changes to our EPS, target price (20% discount to RNAV) or Add rating, with catalysts still expected from expansion of capacity in the cement division and securing the Track 4A power concessions by YTL Power.

What Happened

The government may be looking at extending the ERL service from KLIA to Malacca, according to the Business Times. The RM8bn project would comprise a 45km KLIA-Seremban leg and a 45-55km leg from Seremban to Malacca. Approval would depend on the results of a feasibility study by the Public Transport Commission. ERL CEO Noormah Mohd Noor said that the proposed extension could help ease congestion on major highways in the Klang Valley. "With the ERL, travel time from Kuala Lumpur to Seremban should be about 50 minutes, and an additional 30 minutes to Malacca".

What We Think

This extension could help ERL and YTL secure the HSR project to Singapore, in our view. The HSR involves a parallel line stopping in every secondary town between KLIA and Singapore and this extension would address a major portion of that service. The RM8bn cost of the extension works out to RM90m/km, nearly twice the original cost per km of the ERL. This is not a surprise, taking into account capital-cost inflation and land-acquisition premiums since 2002 when the ERL was completed. The RM90m/km cost would imply a total cost of RM30bn for the HSR, in line with expectations.

What You Should Do

We have not factored the HSR into YTL's valuation. The RM8bn extension and HSR project could fill the current vacuum in its construction profits. Assuming a 5% net margin and 3-year construction period, HSR could potentially add RM130m to YTL's bottom line or 8% to our EPS forecasts. YTL's shares are poised to perform strongly on the back of positive newsflow going into the second half of the year.

copied from
http://splashurl.com/lj5w28r (published 27 May 2014)

JF Apex Research said YTL Corp was expected to be in focus following news report the government is looking at extending the express rail link (ERL) service from Kuala Lumpur International Airport (KLIA) in Sepang to Malacca with project cost of RM8bil. (sources from The star online which they took from JF Apex Research)

without increase in dividen, the price is also hard to go up.

Why YTL gives low dividen?

I think the price will only up if the dividend is more than the currently RM0.05. No matter how much they earn without dividend is also nothing. If this counter is so sensitive to good news then it already up many many times liao. Good news bring not much effect on this counter.

the dividend is a poor low 1.5 cent for a KLCI company.