Share swap idea is because YTL intend to unlock UK wessex water and Sing Power seraya in next few year. But, the current corporate structure is both of these prime assest are park under YTLP, in which YTL only control 55%.
In order to maximize value, YTL should take over YTLP first, before unlocking UK wessex water and Singapore Power seraya.
Francis Yeoh control 50% YTL YTL control 55% YTLP YTLP control 100% Wessex water and 100% Power seraya
If you are francis yeoh, planning to unlock wessex water and power seraya through listing, what should you do?
Remark: Francis Yeoh via family member also have direct stake in YTLP, about 10%
The reason why YTL intend to unlock UK wessex water is because recent high inflation in UK have push up wessex water enterprise value significantly。 It next 5 year renewal is due on 2025, will leap up higher traffic rate, which is prime time for YTL to unlock through listing.
On the other hand, YTL power seraya also due to unlock value through listing as it currently enjoy very handsome profit margin 20%.
Such high margin is due to Singapore current imbalance energy demand and supply. New power plant supply only kick start in 2026 and before more import green energy materialize。
Remark: Seem Francis Yeoh is eager to retire and wanna to get steady handsome dividend forward. Unlocking prime land in japan, privatize YTLP before listing YTL seraya and wessex water is imminent to boots up dividend payout forward.
To support YTL share to outperform YTLP, its other division need to perform now: 1. Construction (Gemas double track train, Green data center civil work, EPCC solar power plant, logistic warehouse for Shoppee, UK property development), 2. building material and cement (YTL cement . Mcement), 3. REITS (starhill and YTL hos) + Sentul property development (YTL land)
Upcoming, many catalyst to propel YTL share price higher. Earning contribution ratio will change from current YTLP (60%): others (40%) to YTLP (40%): Others (60%)
1. MRT3 civil contract 2. MRT3 train system contract 3. HSR concession cum construction orderbook 4. Cement and building material (Mcement to report massive EPS hike due to tumbling production cost on coal, continuous elevated cement selling price and maiden dividend is expected) 5. Unlocking Japan landbank, peripheral asset 6. REITS to report massive EPS due to revaluation surplus 7. YTLP to report further increase EPS due to wessex water hike and Power seraya 8. Currency strength on pound, USD and Sgd
YTLP is expect to acquire more Boustead estate in preparation to develop solar plant, targeted to export to Singapore. YTL construction is task as EPCC to develop these solar power plant to be import by Power seraya in singapore next
Cannot break new high. All the catalysts are meant for 28, 29 and 30 August 2023, where the bombastic final quarter results will be announced. Still got 6 weeks to wait. Massive roadblock at 1.11 and 1.12.
Something crazy is happening on the Tokyo stock exchange...YTL shares are up 36% there & trading at the equivalent of $1.60 +....after touching a high of ¥66($2.12!)...That's it...no more selling from me until at least the ex-dividend date!
KUALA LUMPUR, March 13 (Reuters) - Malaysian energy to construction firm YTL Corp YTLS.KL may list its shares overseas if it cannot eliminate the chronic under-valuation in its locally listed stock over the next five years, its boss said on Tuesday.
Managing Director Francis Yeoh told Reuters the company would keep boosting shareholder returns in an effort to narrow the discount, through ordinary cash dividends, potential special dividends, share buy-backs and discounted equity offerings.
But Yeoh, who has long held that YTL Corp shares trade below their fair value, said he would review the company’s options if the new policy of ramping up returns did not fix the problem.
“In five years time, let’s say, probably I will review and say which is the best exchange to list on at that time,” he said in an interview in his penthouse office overlooking Kuala Lumpur.
“The business will have been built and there will be so much more capacity in our businesses in five years. We will know what to do by then.”
....
YTL Corp YTLS.T keeps a listing for its Japanese investors in Tokyo, but has resisted entreaties to launch a major listing in London, home to its biggest asset in Wessex Water, preferring to stay in Malaysia where market liquidity is thin and the ringgit currency remains a barrier for some foreign investors.
Malaysian broker Kim Eng Securities has a target price of 8 ringgit per share on the stock, which ended on Tuesday at 6.90 ringgit. It trades at 1.43 times book value, putting it at the lower end of firms in the DJ World Industrials Index .W1IDU.
YTL Corp has suffered this discount despite being an aggressive buyer of its own stock. For years, it paid a meagre dividend yield but announced steps to boost shareholder returns five-fold for its current financial year to end-June 2007.
KUCHING: Sarawak is expected to see the entry of two major regional cement manufacturers, namely YTL Cement Bhd and SCG International (Thailand), under a bold plan by the state government to strengthen the cement supply chain.
This followed their (YTL Cement and SCG International) signing of a memorandum of understanding (MoU) with Innocement Sdn Bhd, a joint venture between Sarawak Economic Development Corp and Bintulu Development Authority, here last Friday.
SCG is a subsidiary of Siam Cement Group, while YTL Cement is Malaysia’s oldest and biggest cement manufacturer.
Sarawak Premier Tan Sri Abang Johari Tun Openg said Innocement’s mission is to strengthen Sarawak’s cement supply chain and to ensure the long-term reliability of supply and stability of prices of cement in the state.
He said to achieve Innocement’s goals, there must be sufficient supply of cement throughout Sarawak, adding that these supplies can be accessed in a timely and cost-effective manner and that prices are stable and transparent......
He said Sarawak has an undeveloped cement industry as there is currently only one single supplier (CMSB).
“It is imperative for the development of Sarawak to reduce the risk of total dependence on a single supplier to create a healthy competitive environment and that new blood be injected into the state’s cement industry.
“The cement supply chain of Sarawak needs to be strengthened,” he added.
The Premier said with the collaboration with YTL Cement and SCG International, Innocement can fast track the growth and cut short the time-to-market.
YTL Cement has operations across Malaysia, Singapore and Vietnam.
SCG International, on the other hand, has a total cement production of 34 million tonnes across 11 cement plants located in Thailand and throughout the Asean region
YTL wholly own YTL cement, to fully benefited from YTL cement expansion market share to Sarawark, which is now set ambition to upgrade state infrastructure tremendously.
YTL cement able to enjoy full benefit as it have spare capacity, readily to increase its exiting plant utilization to meet these new demand.
By just increase exiting plant utilization rate, it will increase plant efficiency, reduce operation cost further on top current tumbling feedstock material cost.
For long time, Sarawak only allow CMSB to operate cement and give its exclusive status due to Taib family control. New premier seem wan to wrest Taib empire by open up state market via direct import cement from YTL cement and SCG from Thailand even CMSB promise to expand its cement production to meet local demand.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
PalaniR
86 posts
Posted by PalaniR > 2023-07-17 09:39 | Report Abuse
Won't press down to that price ... I think it will sustain at above RM1