Extract from Dragons Analysis moving forward for the YTL Group.
Multiple Re-rating Factors for YTL Group of Companies - ------------------------------------------------------- Despite the latest strong quarterly results and recent stellar share price rally, there are still multiple re-rating factors for YTL group of companies in coming quarters:
A whopping 20 factors , here you go.
1-Continued strong earnings from PowerSeraya contributing >RM700 million net profit every quarter to YTL Power 2-Potential listing of PowerSeraya on SGX, which may potentially fetch a valuation of SGD 8.0 billion 3-Strong rebounds in Wessex earnings after interest rate hike cycle in the UK ends, high inflation starts to cool off and water tariff hike from 1st April 2024 4-Potential listing of Wessex Waters in in 2025-2026 which may fetch a valuation of over RM20 billion 5-Favourable outcome from the international arbitration on Jordan power venture which will enable it to fully realise PPA earnings and shareholders’ loan interest income of RM500-600 million a year 6-Maiden earnings contribution from the first phase of green data centre project with SEA Group from Q3-Q4 FY2024 7-Maiden earnings contribution from the first phase of AI data centre project in collaboration with Nvidia from mid 2024 8-Maiden earnings contribution from the digital bank venture from 2025 9-Potential turnaround of Yes 5G business as early as Q3 FY2024 and decent profit contribution of RM260 million and operating cashflows topping RM1.0 billion a year from 2024 after it secures another 1.0 million 5G subscribers 10-Financial close for the Waste-to-Energy (WTE) power plant project in Rawang 11-Potential securing some of the RE power export to Singapore from 2025-2026 12-Successful commissioning of the new 600MW hydrogen-ready CCGT by PowerSeraya and new profit contribution from this new unit of at least SGD200 million a year from 2028 13-Continued strong earnings and dividend payouts from MCement 14-Potential placement of MCement shares to strategic investors at over RM5.00 per share to improve public spread (YTL owns 78.6%) and to realise cash for YTL 15-Rolling out of mega infrastructure projects in Malaysia and new Indonesia capital city development in Nusantara to boost cement demand 16-Strong rebounds in YTL shopping malls and hotels business division 17-Strong dividend payouts from YTL Power (15-18 sen) and YTL (9.5 sen) from FY2024 18-Potential clinching of MRT3 package by YTL construction arm 19-Potential revival of KL-Singapore High Speed Rail (HSR) project 20-Potential monetisation of assets by YTL – injection of unlisted hotels and shopping malls into the REIT, monetisation of some landbank at Niseko Japan, potential listing of Japan Niseko assets on Japan stock exchange, potential disposal of peripheral assets and land parcels etc.
Indeed, YTL Corp's results surprised on the upside, with better than expected earnings from cement and hotels divisions.
But YTL Power earnings are also better than most analysts' expectation, with continued strong earnings from PowerSeraya plus the wild card in AI data centre business. Some analysts forecase net profit contribution of up to RM1.2 billion a year from data centres to YTLP every year from 2026
Easily RM2.50 stabilization price whereby the PE is still low. A conglomerate discount is normal but i see it trending to at least RM3 in the near term.
Dear Dragon328, your unwavering support continues to fuel the flames of my wild dreams. Once again, your latest write-up has propelled me to reach even greater and more audacious heights in my aspirations. I sincerely appreciate your dedication to keeping the flame of my dreams alive and being an ardent fan of YTL's companies. Thank you for inspiring me to dream bigger.
YTL or YTLP power up rally not by retail investor but by foreign funds holding a long term view on YTL group. Group earnings in SGD or USD. Only 10% in MYR. Look at the core business structure. Partner with Nvidea on the A1 smart data centre. Whenever there is a price retracement at 2.15 - 2.20 smart money will accumulate.
hahahaha thats what u like to think. Don't fight the trend. Sharks, big local & foreign fund, retailers, water fishes & anchovices (everyone who understand fundamentals) are pushing up
A MIS-GUIDED PERCEPTION OF SPECULATIVE TRADING Ytlpower earning has peaked out in aug last yr n starts to come down. Going forward ytl earning will come down due to lower contribution from ytlpower. This feel good factor is misplaced. Share price will go back to 2.15 where it was about to go down last few days, and drop to 1.80. And all you speculators will lose 60 cents a piece, some time in march.
All the sour grapes will keep on telling their grand mother stories without any related data, facts or figures that market will come down . Look at how US market breached the 39,000 mark. Coconut brains have asking people to sell YTL when the price was at 1.40 , again telling the same old story when YTL touch 2.00 price range. Same old words when YTL hit 2.30 . Making loud noise when YTL after market retrace back after hitting 2.50.
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rr88
6,532 posts
Posted by rr88 > 2024-02-23 08:48 | Report Abuse
As usual SELL THE NEWS at opening bell because technicals are very bad.