when things go online, it will need a place to store those data.Shopee is consume lots of data storage.
If bank goes in digital mode, it require tons of storage to ensure the operation can run smoothly. Im guessing, the latest 168MW DC is purposely made for digital bank.
168MW is super super super big DC. if this DC is reserve for digital bank, means that, Sea and YTL Digital will put very big effort to run this digital bank business.
Not like Singapore, although the digital bank license had been awarded, but all 4 license holder still no doing anything yet, its mainly because the traditional bank already serve most the Singaporeans banking need.
YTL Digital Capital SB is actually a sub-sub of YTL Corp Bhd ie a direct subsidiary of YTL Power International Bhd . It is an investment holding company with an equity interest of 55.5% owned by YTL Power International Bhd ..please refer to Notes to the accountes under Note 15 -investment in subsidiaries on page193 of the Annual Report of YTL Corp. listed in Bursa.com
1. The fund required to run this digital banking business doesn’t cause any problem to YTL Power. The initial capital investment for Malaysia’s new digital banking licence is around RM100 million (unimpaired by losses) during the “foundational phase” of three to five years and by the end of five years, the consortium needs to achieve a minimum amount of capital funds of RM300 million (unimpaired by losses). Wong noted that YTLP can easily fund the capital requirement (for its shareholding portion) with the recently completed RM3 billion cash proceeds from the disposal of ElectraNet Pte Ltd. https://themalaysianreserve.com/2022/05/06/hlib-positive-on-ytl-powers...
3. Profitable is achievable within 2-5 years. 2years example: Kakao Bank, which was listed in South Korea in August 2021, became profitable in 2019 after less than two years in operation. https://www.thestar.com.my/business/business-news/2022/05/02/digital-b... 5years example: Estimate for hong kong digital bank will make profit after 5 years in 2024. I cant find the sources.
Yeoh not capable to establish new business that makes profit. For example, YES telco. Im really sad with YES telco. Even with the contract with BN government, YES telco still keep losing BIG money for decade. Other major telco make BIG profit, even minor telco likes Tunetalk, Redone, Umobile make profit too. ONLY YES telco, still keep pumping money/milk from mother like an ungrown BABY.
YTL actually not bad, BUT the other stock perform much more better.
Why stay away from YTL? Because YTL not striving to create profit for share holder, BUT they tend to MAINTAIN Yeoh’s Family own luxury life style. These Yeoh can’t generate profit more than their luxury salary. Yeo need PARTNER to run their business. 肥水不流外人田。Yeoh claim director salary twice.
xiaochen, I agree with you that dividends are important to minority shareholders like us. Dividends have been down to 4.5 sen to 5.0 sen in the past few years, that is discouraging. But I believe YTL Power had really no choice but cut down dividends in past few years due to non-performance of its few subsidiaries like Yes telco business due to competitive environment and PowerSeraya due to over-supply situation in Singapore electricity market then. I think the bad times are behind us and the outlook of YTL Power is turning brighter. They have just delivered a couple of good news in the past 3 months - 1) disposal of Electranet for RM3.05 billion cash,, (2) the launch of green data centre in Kulai with the first 72MW under construction and another 162MW contract signed. Hopefully YTLPI will declare higher dividends for FY2022 with its nett cash position now. I am hoping for at least 7.0 sen for FY2022 and then hopefully 10 sen for FY2023.
There should be some misunderstanding there when one claims that Yeoh directors got fat salary and director fees. The Yeoh directors have actually foregone their salary and director fees for 2 years when the company was making losses. The total fee of RM842k for non-exec directors was not too excessive though I reckon that they might not deserve it given the company has not performed in past 3 years.
That is why there were 216 shareholders who voted against this director fee payment during the last AGM. I would have voted against it too if I were there. I think they should have been paid just the RM1,000 attendance fee for each board meeting attended and no more.
Anyway I believe the outlook of YTL Power is becoming better with multiple re-rating factors coming in next few months - higher dividends from FY2022, Jordan power plant to start commercial operations in 2H2022, PowerSeraya earnings to rebound strongly, digital bank business to kick off from mid 2023, potential win of power import bid from Singapore, continued clinching of more data centre deals in its Kulai data centre park, etc.
Seems like DC can contribute meaningful revenue contribution from 50MW DC. Reference from TIME DotCom. “We expect meaningful revenue contribution from the second Cyberjaya facility in 2022. The site is ultimately scalable to 50 megawatts, and there is thus ample scope for further growth,” the research outfit said. https://themalaysianreserve.com/2022/01/21/times-data-centre-expected-...
Xiaochen, I can understand your frustration. Many minority shareholders have been suffering from depressed share price of YTL Power in past few years. I have friends who bought into YTLPI at about RM1.50 per share and they are cursing the stock like hell. I would call for patience and I think the re-rating time is finally arriving. If you have been holding it for 5 years or more, why not hold a bit longer to see if the share price will go back to the level you first bought? I foresee good share price rebounds back to RM1.50 level within the next 18 months.
Seems like im not alone who lose BIG money in this counter.
Some points to look for the coming QR 1. How much profit could generate from the Singapore 12.5MW DC. Imagine what if the total DC come to 252.5MW in 2024. 2. How much YES could benefit from the launching of 5g. The free access to 5g is extended to June. Actually YES benefit a lot through its partner Shopee. 3. Is there any interim dividend announce. 4. Will the EPS been improved? How far will be this improvement, or getting worse.
Something not usual happen to YTLP. 1. listed as top 2 most active counter before. 2. Daily Trading Volume is higher than before. 3. The news/research is keep coming up. 4. conclusion: those big fish is preparing to goreng this counter.
I expect better results in this coming March quarterly result but may not have any big surprise. I do agree with you that it is unusual for YTL Power to have such active trading volume in past 4 weeks. The peak volume of over 100 million on 8th April 2022 clearly indicated strong fund buying, likely to be foreign funds as local funds like EPF had been selling.
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....