YTL POWER INTERNATIONAL BHD

KLSE (MYR): YTLPOWR (6742)

You're accessing 15 mins delay data. Turn on live stream now to enjoy real-time data!

Last Price

0.67

Today's Change

-0.015 (2.19%)

Day's Change

0.665 - 0.685

Trading Volume

1,957,800


23 people like this.

12,643 comment(s). Last comment by Value Investor Coo1eo 1 hour ago

xiaochen

45 posts

Posted by xiaochen > 4 weeks ago | Report Abuse

https://www.ema.gov.sg/singapore-energy-statistics/Ch02/index2

If you want to know further, you may study this statistics.

The total electricity generation capacity decreased from 12,563.6 MW in 2019 to 12,021.1 MW in 2020 largely due to the retirement of generation units that had reached their “end-of-lifespan”.

If the light yellow Tuaspring refer the YTLP's Tuassping, seems like, this power plant still keep functioning.

Posted by Sweetchocalates > 4 weeks ago | Report Abuse

2 cents dividends for a possible 10 cents drop in price? That's some good inflation plan u got there bro.

dragon328

464 posts

Posted by dragon328 > 4 weeks ago | Report Abuse

Tuaspring power plant should have continued operating though at lower operating rates in 2020-2021 when it was undergoing ownership change from Hyflux to PowerSeraya. It should be able to operate at full capacity once PowerSeraya takes over.

dragon328

464 posts

Posted by dragon328 > 4 weeks ago | Report Abuse

You can see from the chart that PowerSeraya generating capacity reduced in 1H2021 as they retired some of the oil oil-fired power units. The completion of Tuaspring acquisition is timely to replace these oil machines.

dragon328

464 posts

Posted by dragon328 > 4 weeks ago | Report Abuse

Sweetchocalates seems to have bitten some sour plum. Not sure what he was trying to say. Was he trying to ask people to buy now as there might be a technical breakout? Is he part of the operator who tries to manipulate share prices?
Good luck in speculating

dragon328

464 posts

Posted by dragon328 > 4 weeks ago | Report Abuse

YTLPower just broke out resistance 0.775. Should we chase, sweetchocalates?
Then when should we sell before you start crashing it down?

xiaochen

45 posts

Posted by xiaochen > 4 weeks ago | Report Abuse

Hopefully the acquisition could improve the coming QR performance.

dragon328

464 posts

Posted by dragon328 > 4 weeks ago | Report Abuse

good luck then!

xiaochen

45 posts

Posted by xiaochen > 3 weeks ago | Report Abuse

Casa Systems powers YTL Communications 5G network with cloud-native 5G Core
https://www.globenewswire.com/news-release/2022/06/02/2455167/0/en/Cas...

Powered by Casa Systems’ cloud-native 5G Core, YTL Communications can create new 5G services for enterprise and consumer customers and deliver an enhanced user experience with superior speeds and performance. Casa’s cloud-native 5G Core solution provides a full set of network functions including subscriber data management supplied by Summa Networks.

Wing K. Lee, Chief Executive Officer at YTL Communications said: “As the pioneer of 5G in Malaysia, YTL Communications is committed to delivering the best 5G experience to all Malaysians. Casa Systems represents a new breed of 5G technology innovators with cloud-native software solutions that transform networks to be more flexible and scalable. This advanced architecture allows us to evolve at Internet speed to meet the rapidly changing needs of our customers today and tomorrow.”

xiaochen

45 posts

Posted by xiaochen > 3 weeks ago | Report Abuse

I totally have no idea what is Casa Systems, although i had read this article.

OnTime

1,179 posts

Posted by OnTime > 3 weeks ago | Report Abuse

looking at ebitda positive for YES - very soon

Muyutin

131 posts

Posted by Muyutin > 3 weeks ago | Report Abuse

Old fashioned
After X

Price 60sen to 65sen

Posted by Sweetchocalates > 3 weeks ago | Report Abuse

Operator been dumping their shares for some time. Now they go for the kill.

Posted by jeffchan1901 > 3 weeks ago | Report Abuse

if you think the Market is weird, wait till you hear about the political scene. those not voted by the people also can use back door belakang mali to be on gomen too. Malaysia memang boley la.. land of endless possibilities

Posted by jeffchan1901 > 3 weeks ago | Report Abuse

Finally managed to pick up some at 0.685

Icon 888

1,381 posts

Posted by Icon 888 > 2 weeks ago |

Post removed.Why?

cwc1981

412 posts

Posted by cwc1981 > 2 weeks ago | Report Abuse

Australia having energy crisis.......

geary

5,657 posts

Posted by geary > 1 week ago | Report Abuse

Added Utility is long term ◉‿◉

Posted by myloh123 > 1 week ago | Report Abuse

Icon888..pls explain what crisis?

Posted by myloh123 > 1 week ago | Report Abuse

Why is dragon328 so quiet now?

cwc1981

412 posts

Posted by cwc1981 > 1 week ago | Report Abuse

Hidden dragon

dragon328

464 posts

Posted by dragon328 > 6 days ago | Report Abuse

Market sentiment is weak due to US markets crashing down and US Fed raising interest rates aggressively, causing fears of a recession. Fortunately the various businesses of YTL Power are recession proof.
The only setback is the rising interest costs due to increasing interest rates in the UK. Based on the debt amount of RM27.8bn as of 31 Mar 2022, a 25 basis point increase in interest rates will result in RM69.5m higher interest expenses for YTLPower.
We need to continue monitoring the impact of this in coming months.

dragon328

464 posts

Posted by dragon328 > 6 days ago | Report Abuse

I hope the earnings rebound from PowerSeraya and new earnings contribution from its 5G business will be able to cover the higher interest costs. All in, it is still good to hold on to ride on its earnings recovery phase and explosive earnings rebounds from PowerSeraya and 5G business.

dragon328

464 posts

Posted by dragon328 > 6 days ago | Report Abuse

After all, if not utilities and retails stocks, what else to buy and hold in this weak market?
Plantation stocks are having a roller coaster ride following big swings in CPO prices, tech stocks are crashing down (eg. MPI has dropped below RM30.00), glove stocks are seeing no sigh of bottoming, penny stocks attract less trading interests in the weak market.

dragon328

464 posts

Posted by dragon328 > 6 days ago | Report Abuse

YTLPower, being a defensive counter, offers dividend yields of over 7.0% p.a. Which stock else could offer higher?

cwc1981

412 posts

Posted by cwc1981 > 6 days ago | Report Abuse

Is YTL Power Seraya benefit?

dragon328

464 posts

Posted by dragon328 > 5 days ago | Report Abuse

PowerSeraya should not be benefiting from the electricity tariff hikes, nor suffering any disadvantage, as they typically hedge almost 100% of the fuel cost requirements. The electricity tariff hike is just to pass on the higher fuel costs.

dick20

261 posts

Posted by dick20 > 4 days ago | Report Abuse

Thanks dragon 328 for the clarification and providing information for us to continue to hold on YTL Power

cwc1981

412 posts

Posted by cwc1981 > 4 days ago | Report Abuse

Yup thanks

dragon328

464 posts

Posted by dragon328 > 1 day ago | Report Abuse

Welcome. YTL Power share price is at depressed level now due to general weak market sentiments and foreign funds turning nett sellers of Bursa since early June 2022. But I think there are enough reasons to hold onto YTL Power shares to ride on its earnings rebound in coming months.

dragon328

464 posts

Posted by dragon328 > 1 day ago | Report Abuse

While its businesses are mostly recession proof and are not affected by high inflation environment, rising interest rates may be a dampening factor. YTL Power had about RM27.8bn net debt as of 31 Mar 2022, out of this an estimated RM12.8bn debts sit in Wessex Waters level.
The rising interest rates in the UK will increase interest expenses for Wessex Waters but I see this rising cost should be properly compensated by higher water tariffs.

dragon328

464 posts

Posted by dragon328 > 1 day ago | Report Abuse

For the balance RM15.0 billion of net debt at YTL Power and its other subsidiaries, a 25 basis point increase in average interest rates will result in RM37.5 million higher interest expenses for a year. Bank Negara has raised interest rates by 0.25% a couple of months ago and looks set to raise another 0.25% in early July. Economists project another 0.25%-0.50% hike in the remaining meetings in Sept or Dec 2022. So we need to brace for a total 0.75%-1.0% hike in interest rates in 2022, resulting in higher interest expenses of RM112m - RM150m for FY2023.

dragon328

464 posts

Posted by dragon328 > 1 day ago | Report Abuse

I am hoping for the increased earnings from PowerSeraya and maiden earnings contribution from its 5G business to help offsetting the increased interest expenses.

cwc1981

412 posts

Posted by cwc1981 > 1 day ago | Report Abuse

Any contribution from Tuaspring Plant?

cwc1981

412 posts

Posted by cwc1981 > 1 day ago | Report Abuse

Just acquired

ocbc

342 posts

Posted by ocbc > 1 day ago | Report Abuse

YTL vs YTL power , which one is better buy ?

dragon328

464 posts

Posted by dragon328 > 21 hours ago | Report Abuse

The recently acquired Tuaspring plant will increase the efficient power generation capacity of PowerSeraya by 20% and is estimated to contribute gross profit of SGD73m to SGD120m a year from FY2023 onwards as written in my earlier article below:

https://klse.i3investor.com/web/blog/detail/dragon328/2022-06-02-story...

dragon328

464 posts

Posted by dragon328 > 21 hours ago | Report Abuse

YTL vs YTL Power - which one to buy is up to your own judgement on which one may run up first. Each has own merits:
YTLPower has direct exposure to earnings surge from PowerSeraya, 5G business, potential power export to Singapore and new data centre business;

while YTL Corp has direct exposure to booming cement business, potential reviving of high speed rail project and potential monetisation of unlisted hotels and landbank

Posted by observatory > 16 hours ago | Report Abuse

@dragon328, I once read that UK utilities in benefit from inflation as they can pass on the cost. However, how can Wessex Water pass on its higher cost such as higher borrowing cost? At least not until the next regulatory period right?

When interest rate rises, yield seeking investors may also demand higher yield from dividend stocks such as REITs and utilities. And YTL Power is considered a dividend stock. What do you think of this effect?

dragon328

464 posts

Posted by dragon328 > 7 hours ago | Report Abuse

@observatory, the water tariffs for Wessex Waters are pre-determined by Ofwat for every 5 year period using its own assumptions on inflation (RPI), capex requirements, interest rates etc for the next 5 years, eg. Ofwat used 5-year forward assumption of RPI and interest rates for 2021-2025 when it made the determination in 2020.
While there is an update in RPI every year when Ofwat updates the assumption using the latest data, I am not too sure if Ofwat also adjust its interest rate assumption every year to get an out-turn adjustment for the next year tariff.
If not, there will always be a final adjustment at the end of each 5-year period to account for the difference in actual data vs Ofwat assumptions.

dragon328

464 posts

Posted by dragon328 > 7 hours ago | Report Abuse

It is true that when interest rates increase, yield seeking investors may demand higher yield from dividend stocks. Everything is relative. For instance, current US Fed rates are at 1.75%. A common stock that gives a 4% dividend yield may still look attractive to investors. But as US Fed raises interest rates by another 75 bp in end July then another 50 bp in subsequent 2 meetings later this year, US Fed rates may touch 3.5% and hence risk-free bond yields may also go up to same level or slightly above. Then the common stock that offers 4% dividend yield will not look so attractive anymore compared to the returns in investing in risk-free bonds.

dragon328

464 posts

Posted by dragon328 > 7 hours ago | Report Abuse

In the case of YTL Power, I am expecting total dividend of 5.0 sen for FY2022 then possibly 7.0 sen for FY2023, giving a dividend yield of 7% for FY2022 rising to 10% for FY2023. These are way above returns provided by putting money in fixed deposits that pay only about 3.0% p.a. Though Bank Negara is expected to raise OPR by another 25bp + 25bp later this year, at most you will get 3.5% from FD and abour 4.0% from government bonds.

I think there is sufficient buffer in YTLPower's dividend yields that make it attractive relative to fixed income.

dragon328

464 posts

Posted by dragon328 > 7 hours ago | Report Abuse

To add on the interest rate issue for Wessex, there are abundant supply of financial instruments like interest rate swaps that Wessex can buy to hedge against adverse interest rate movements.
Typically YTLPower management is very conservative and will not take any risk on commodity price movement nor FX nor interest rate movements. I expect Wessex Waters to have entered into some interest rate swaps in 2020 when the water tariffs were being set, so as to protect it from any adverse interest rate movements over 2021-2025.

dragon328

464 posts

Posted by dragon328 > 7 hours ago | Report Abuse

Similarly, PowerSeraya always hedges almost 100% of its fuel cost requirements and also forex requirements for as far as 2 years. Hence its margin will not be affected directly by huge swings in fuel prices.

dragon328

464 posts

Posted by dragon328 > 7 hours ago | Report Abuse

Take an earlier example, when YTLPower secured the right to build the first private power station in Malaysia back in 1993 and tried to secure financing for the project, interest rates were going up to as high as 10%-12% in 1994-1997. When no local commercial bank then was willing to lend fixed rate loans, YTLPower approached EPF for a 10-year loan at fixed rate of 10% p.a. That move basically helped YTLPower fence off any interest rate movement risk from the project for 10 years. True enough interest rates went down to single digits after 2000, but the fixed rate loan has helped it to weather through uncertain periods.

dragon328

464 posts

Posted by dragon328 > 6 hours ago | Report Abuse

By extension, the estimated RM6.0 billion of debts sitting at PowerSeraya level may be covered by interest rate swaps too, I hope. Then the rising interest rate impact on YTLPower will be smaller.

Posted by Value Investor Coo1eo > 1 hour ago | Report Abuse

RM0.35 soon...debt laden. Should pare down the debts and improve margins...not pay dividends...

Post a Comment
Market Buzz