Posted by probability > 2024-03-02 20:12 | Report Abuse

Brabazon: Revised plans for 6,500 Filton homes approved

https://www.bbc.com/news/uk-england-bristol-68434412

A spokesperson from YTL Developments said the regeneration is "a once-in-a-generation opportunity".

Originally the application included 2,500 homes, but that has now increased.

The developers said the development is forecast to create more than £5 billion of added economic value as well as more than 30,000 jobs.

https://www.ytlpowerinternational.com/our-businesses/property-development/

Interesting..it really appears to be under YTL Power!

Posted by Uniholder > 2024-03-02 20:28 | Report Abuse

That what’s International for ?


🥳🥳🥳

Posted by Uniholder > 2024-03-02 20:33 | Report Abuse

Multiple super good news.

Easily ignite foreign fund interest again.

🥳🥳🥳

Posted by probability > 2024-03-02 20:34 | Report Abuse

Thats like 30 Billion MYR...as good as HSR award! Just that the profitability would be even more guaranteed in UK...unlike malaysian HSR where the project cost is squeezed irrationally

Posted by Uniholder > 2024-03-02 20:35 | Report Abuse

News outlet should pickup these super good news and place it under news and blogs in i3.


🥳🥳🥳

Posted by Uniholder > 2024-03-02 20:38 | Report Abuse

@probability

Next week would be firecracker for YTLP.

🎉🎉🎉

DC partnership with Nvidia
30B development project in Bristol

This is…. I can’t find word to express…. 😁😁🥳

Posted by Uniholder > 2024-03-02 20:40 | Report Abuse

I rephrased, “approved” development project.


🥳🥳🎉

Posted by Uniholder > 2024-03-02 20:40 | Report Abuse

The Edge, pls pickup the news ya. 🥳🥳

Posted by Uniholder > 2024-03-02 20:41 | Report Abuse

Below 4.00 is way wayyyy undervalued….

🎉🎉🎉

Posted by Uniholder > 2024-03-02 20:45 | Report Abuse

Now YTLP turns to shine after the mother YTL has shone and took centre stage….

Or best, let both shine next week….


😁😁🎉

Posted by klee > 2024-03-02 20:56 | Report Abuse

Twin rockets firing next monday.Gap up 10 sen n break 4.24 at close.

Posted by klee > 2024-03-02 21:04 | Report Abuse

IB's will be busy rerating after this news.

Posted by Uniholder > 2024-03-02 21:05 | Report Abuse

🤝 @klee


🤩🤩🥳

Posted by Uniholder > 2024-03-02 21:06 | Report Abuse

@klee, can we do it 4.28 instead of 4.20 ?

My longtime TP 4.28


😁😁

Posted by klee > 2024-03-02 21:10 | Report Abuse

uniholder,can we talk abt 5.0 or more from now on? haha

Posted by Uniholder > 2024-03-02 21:11 | Report Abuse

Road to 5.0, you mean @Klee ???

The path is all cleared, I assume. 😊

Posted by Uniholder > 2024-03-02 21:11 | Report Abuse

March is the month of a new high for YTLP, I suppose.


🎉🎉🎉

Posted by Uniholder > 2024-03-02 21:19 | Report Abuse

Unleash the kraken…..


🥳🥳🎉

Posted by klee > 2024-03-02 21:20 | Report Abuse

Jensen give rm20 bil jv n ytlp shot up rm1.5.Now got rm30 bil project how? Haha

Posted by Uniholder > 2024-03-02 21:24 | Report Abuse

@klee, let’s see how market reacts in advance on the 30B project in UK.


🥳🥳🥳

Posted by Uniholder > 2024-03-02 21:24 | Report Abuse

Who knows, the road to 5.0 come sooner than later ?


🎉🎉😁

Posted by OTB > 2024-03-02 21:38 | Report Abuse

Below is my sharing on the EPS of YTLPower.
It is not a recommendation to buy. Please note.

Projected FY 2024 result
PAT = 3.426 billion
NOSI = 8.158 billionEPS = 0.42
The average PER of FBMKLCI component stock is 15
If PER = 15, Target price = 6.30

Note :
I did not project or include any profit from AI data centers from Nvidia in FY 2024 result.

Nvidia and YTLPower partner for USD 4.3 billion AI data centers in Malaysia.
Please read the link below.
https://www.datacenterdynamics.com/en/news/nvidia-ytl-power-partner-for-43bn-ai-data-centers-in-malaysia/
USD 4.3 billion = RM 20.00 billion (1 USD = RM 4.65)
I assume Nvidia will utilise a capex of RM 4.30 billion only in FY 2025 (after June 2024)
Capex = RM 4.30 billion
Revenue = RM 860 million (20% of Capex)
EBITDA margin 50% = RM 430 million
PAT = 310 million (Assuming 28% tax)
Additional EPS = 0.038 in FY 2025
I believe EPS for FY 2025 is 0.458
If PER = 15, Target price = 6.87 in FY 2025.

FY 2026
If Nvidia utilises a capex of RM 20 billion in FY 2026 (after June 2025)
Capex = RM 20 billion
Revenue = RM 4.0 billion (20% of Capex)
EBITDA margin 50% = RM 2.0 billion
PAT = 1.400 billion (Assuming 28% tax)
Additional EPS = 0.196 in FY 2026
I believe EPS for FY 2026 is 0.62
If PER = 15, Target price = 9.30 in FY 2026.

Nvidia
Data centre contributed USD 18.4 billion revenue to Nvidia
USD 18.4 bil = RM 88 billion (1 USD = 4.78 RM)
If YTLPower just get 1 plus % of this revenue, it will be adding RM1 billion to its revenue

Note :
FY 2024 ends on 30/6/2024, if the target price is based on PER=15, the target price is at least 6.30 before 30/6/2024.
If Nvidia and YTLPower partner for the USD 4.3 billion "AI data storage centers" project starts in FY 2025 (July 2024), the EPS for FY 2025 will be at least 0.458.
Based on PER=15, the target price = 6.87 in 2024/5 after July 2024 till June 2025.
According to one of the IBs, the PER should be equal to 18 if the "AI data storage centers" project starts in July 2024.
If PER=18, the target price of YTLPower should be 8.24 after July 2024 till June 2025.
Based on the present price of YTLPower at 3.92, the potential gain is 110% if you buy and hold YTLPower shares from now until June 2025.
I am really excited about this news. If it is a true fact, we should buy and hold YTLPower until June 2025.
I do not want to be too bullish on this share, I still prefer to use the target price at 6.87 using the PER=15.
Special note :
1.) The above article is based on my research, it is for sharing purposes only.
2.) I also shared my research on YTLPower when the share price was around 1.10. I shared it with good deeds.
3.) It is not a recommendation to buy, the final decision to buy is always yours.
Good luck.
Thank you.

Posted by klee > 2024-03-02 21:44 | Report Abuse

Thanks Otb.Ytlp shud be the next big call after your supermx call.

Posted by klee > 2024-03-02 21:45 | Report Abuse

Otb.You are the most valuable i3 forummer.

Posted by Uniholder > 2024-03-02 21:47 | Report Abuse

Thanks for the updates, OTB.


🎉🎉

Posted by chon99 > 2024-03-02 22:29 | Report Abuse

Thank you OTB

Posted by Alex Chua > 2024-03-02 23:08 | Report Abuse

Hmm nvdia creating alot partnerships https://www.thejakartapost.com/business/2024/02/29/pioneer-in-indonesia-indosat-collaborates-with-nvidia-for-sovereign-ai-infrastructure.html

Posted by investopology > 2024-03-02 23:32 | Report Abuse

Thanks Otb and all the ppl here to share the good news!

Posted by probability > 2024-03-03 10:08 | Report Abuse

@dragon328 or anyone, any idea how much revenue from YTL Developments UK will reflect under YTL Power, i.e what is the % ownership by YTLP?

Posted by Jerichomy > 2024-03-03 10:30 |

Post removed.Why?

Posted by Jerichomy > 2024-03-03 10:31 |

Post removed.Why?

Posted by Jerichomy > 2024-03-03 10:32 |

Post removed.Why?

Posted by Jerichomy > 2024-03-03 10:33 |

Post removed.Why?

Posted by Jerichomy > 2024-03-03 10:59 |

Post removed.Why?

Posted by dragon328 > 2024-03-03 11:45 | Report Abuse

@Probability, thanks for highlighting the approval news of the Brabazon project in the UK.

This property development project has always been under YTL Power, as YTLP management has acquaintance with the Bristol council in dealings for Wessex Waters which is located nearby in Bath.

I think YTL Power has 100% equity stakes in this Brabazon project, as stated by the following statements in YTLPower 2023 Annual Report:

"Brabazon
YTL Developments UK Limited (“YTL Developments”), a wholly-owned
subsidiary of YTL Property UK, is undertaking one of the
UK’s largest master planned developments, located on the former
Filton Airfield site. Brabazon Bristol is a 380-acre mixed-use urban
development and the Group’s first UK property development
project.
Awards won this year include Residential Project of the Year (36
Homes and Over) – Michelmores Property Awards 2023;
Residential Developer – Insider South West Property Awards
2023; and Developer of the Year – Bristol Property Awards 2022.
Masterplan Densification
Planning approval from South Gloucestershire Council is currently
pending for the proposed update to the development’s Masterplan.
The approval will allow the new Masterplan to deliver up to 6,500
residential homes, student accommodation units, 4 million sqft of
commercial floor area and approximately 1 million sqft of
educational and community facilities."

I believe that the construction work for this massive Brabazon property development project will be undertaken by YTL Corp's construction arm. The total construction work may be worth over a billion pounds (>RM6.0 billion) to be awarded to YTL in next few years.

Posted by Uniholder > 2024-03-03 11:50 | Report Abuse

Awarded to YTL Construction Arm,

Twin cylinder firing up then, 🎉🎉🥳

Posted by Apple888 > 2024-03-03 11:51 | Report Abuse

Original gdv was 2.5bil pounds.
Now doubled to 5bil pounds

Posted by klee > 2024-03-03 12:02 | Report Abuse

Tq dragon328

Posted by klee > 2024-03-03 12:03 | Report Abuse

Rm 20 bil spike rm1.5,Rm 30 bil spike berapa?

Posted by klee > 2024-03-03 12:04 | Report Abuse

Rm 6 kambing

Posted by Uniholder > 2024-03-03 12:05 | Report Abuse

Spike to new high of RM5.50 m happy alreadyyy, @Klee

🎉🎉

Posted by dragon328 > 2024-03-03 12:12 | Report Abuse

On the potential earnings contribution to YTLP from the Brabazon project, I have previously not included it as the master plan was not approved yet. Now the plan has been approved (on 29 Feb 2024) and it entails exactly the sizing as envisaged in the 2023 Annual Report.

Without assess to more detailed development plan, I will just do a quick estimation here on the potential earnings contribution from the Brabazon project to YTLP.

The approved plan envisages development of 6,500 new homes and 4 million sf of commercial floor area in Bristol. Using the national average house pricing in the UK of about GBP275,000, I estimate that the total GDV for the 6,500 new homes may amount to GBP1.8 billion. Using a rough gross profit margin of 25%-30%, I estimate that total development profit for the 6,500 new homes may amount to GBP500 million over the next few years.

Assuming development over 10 years, average gross profit will be GBP50 million a year. Applying UK corporate tax rate of 25%, net profit contribution to YTLP may come to GBP37.5 million or RM225 million a year over next 10 years.

Then for the 4 million sf of commercial area, the potential rental income may be huge too. Online checks show that Bristol commercial / office rental rates are between GBP25-30 psf per annum. So for the proposed 4 million sf of new commercial area, the potential gross rental income may amount to GBP100 million to GBP120 million per annum. Deduct off 25% for miscellaneous charges for property management, the net property income may come to GBP80 million to GBP90 million per annum. Again deduct off 25% corporate tax, net earnings contribution to YTL Power may be GBP60 million to GBP67.5 million, or RM360 million to RM405 million a year to YTL Power.

That's my rough estimation - RM225 million a year of net profit contribution to YTL Power from this project, increasing over time to as much as RM630 million a year when the commercial area is fully developed. After all the new 6,500 homes are delivered, the recurring income will be from the commercial area which may contribute over RM400 million of net rental income to YTLP every year.

Posted by Uniholder > 2024-03-03 12:22 | Report Abuse

Thanks again for the insightful analysis, @dragon328.

As always, encouraging to read !

Share price will follow suit, 😁


🎉🎉🎉

Posted by Uniholder > 2024-03-03 12:26 | Report Abuse

Immediate 3.0 for YTL and 5.0 for YTLP looks not far away with the good news pouring in.

🎉🎉🎉

Posted by probability > 2024-03-03 12:59 | Report Abuse

thanks dragon328, fantastic news...

Posted by klee > 2024-03-03 13:39 | Report Abuse

Ytl group management has a long term view of investing.They invested and waited patiently for yrs on end.Now their investments are starting to bear fruits.These are early days.More and more surprises may be on the way.In stocks,just ride with the strongest.

Posted by MrFox > 2024-03-03 14:21 | Report Abuse

certainly!!!! am happy ahmoing! because the ahmoi is getting prettier !!!
haha

Posted by OnTime > 2024-03-03 14:26 | Report Abuse

especially on a rainny sunday in kulai!

Posted by klee > 2024-03-03 14:37 | Report Abuse

Mr OTB.Can we have your view of how the Uk brabazon project will impact the profitability of YTLP? Thanks.

Posted by darrenliew > 2024-03-03 14:55 | Report Abuse

Dragon328 Tq for your very insightful write up and computation on YTLPOWR'S Brabazon devt project.
I wish to add something which many may not be aware.
I.e. UK policy practice in NOT ALLOWING property developers to recognise all sales Incomes and profits into their financial accounts UNTIL AFTER certified completion of the units sold and keys delivered to the purchasers. This will take 3 to 4 years to be legally fulfilled.
Hence YTLPOWR will not be able to show the sales revenues and profits from this UK project in their quarterly/yearly financial results until after 2026 or 2027.
This a true situation which can be verified by referring to EWINT's projects in UK where their directors gave explanations when releasing their quarterly results as to why their company suffered losses or made less.
So we will have to wait for a few years before we can see the financial contributions from Brabazon.
(Just wish to share knowledge and awareness)
Tq