RANHILL UTILITIES BERHAD
KLSE (MYR): RANHILL (5272)
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Last Price
1.30
Today's Change
+0.11 (9.24%)
Day's Change
1.20 - 1.30
Trading Volume
2,935,300
Analysis
Price Target
A price target is an analyst's projection of a share's future price.
Average Target Price, Price Call and Upside/Downside here are derived from Price Targets in the past 6 months.
Last Price
1.30
Avg Target Price
0.94
Upside/Downside
-0.36 (27.69%)Price Call
13
SELL
2
HOLD
3
BUY
| Date | Open Price | Target Price | Upside/Downside | Price Call | Firm | View | Action |
|---|
Discussions
8 people like this. Showing 50 of 4,729 comments
Ranhill Utilities - Still Lacking Firepower; Keep SELL
Date:
2024-08-15
Firm:
RHB-OSK
Stock:
RANHILL
Price Target:
1.10
Price Call:
SELL
Last Price:
1.46
Upside/Downside:
-0.36 (24.66%)
Maintain SELL, with new MYR1.10 TP (from MYR1.15), 26% downside, c.1% FY24F yield. Ranhill Utilities recorded a 1H24 core profit of MYR16.9m (-27% YoY) – missing expectations – making up 36% and 32% of ours and Street’s estimates. The negative deviation was mainly due to the weaker- than-expected performance of the engineering services and power divisions. With hefty valuations in the absence of any sizeable near-term catalyst, we maintain our call on RAHH, which is trading at FY25F P/E of 40.6x, >2SD above its five-year mean P/E. Dividend yields are unattractive at just c.1%.
For 1H24, the PAT for the water segment dropped slightly by 2% YoY as the higher revenue from the tariff hike for domestic consumers (effective February) was offset by higher amortisation on service concession assets of RanhillSAJ. The engineering services segment saw a larger YoY drop in PAT of 22% in 1H24 due to a reversal of profit for a detail design engineering project awarded by a Brazilian oil and gas producer. Likewise, the power segment recorded a 12% YoY drop in PAT in 1H24 due to derecognition of capacity payment by Ranhill Sabah Energy II plant (related to a failure despatch incident) plus higher maintenance costs.
While we view YTL Power International (YTLP MK, BUY, TP: MYR6.68) could enhance RAHH’s operational efficiency in the long run by leveraging on its existing experience in the power and water services sector, the only near- term catalyst we see is the plan to supply water to Penang from Perak through the proposed Kerian Integrated Green Industrial Park. RAHH may benefit from such plans via its subsidiary Ranhill Water Services, which has clinched water projects beyond Johor – namely the MYR61.5m job to replace old pipes in Kelantan covering a total length of 103km secured in Mar 2022. Other jobs include laying c.52km of new mild steel distribution pipelines throughout the Royal Malaysian Navy base in Lumut under a contract worth MYR38.5m.
Other developments. The RAHH-led consortium for Indonesian Djuanda source-to-tap water project (estimated treatment capacity of 605m litres per day and capex of USD600m) has resubmitted the feasibility study (resulting in further delays to obtain initiator status). Once accepted, then an initiator status would be granted to the RAHH-led consortium, enabling it to bid for the said project via a public tender with a right to match advantage.
As results missed expectations, we slash FY24-26 earnings estimates by 12%, 10%, and 7% post earnings adjustments for the power and engineering services division, which was weaker than expected. Therefore, we arrive at a new SOP-derived TP of MYR1.10 (from MYR1.15) which bakes in a 4% ESG premium based on an ESG score of 3.2.
Risks to our call: Higher-than-expected water consumption and faster-than- expected job replenishment for its engineering services arm.
Source: RHB Research - 15 Aug 2024
2 weeks ago
https://www.cnbc.com/2024/08/15/eric-schmidt-on-nvidia-you-know-what-to-do-in-the-stock-market.html
Ranhill is warming up only at this stage !
2 weeks ago
Weak holder without patience forever cant make huge gain in stock market !
2 weeks ago
Ranhill Utilities Bhd may see better quarters ahead, supported by its water and renewable energy (RE) businesses
https://www.thestar.com.my/business/business-news/2024/08/16/water-re-assets-to-bolster-ranhill-utilities
2 weeks ago
Be realistic guys.
How many of you here can tahan if YTLPower pinjam shares from all IBs & short it to 90sen & below?
The company can easily do that by paying IBs may be 10% of interest. & repeat that for a few rounds then everyone here will be "Washed" away.
2 weeks ago
TA TP RM 1.06, MIDF TP RM 1.07.
https://www.thestar.com.my/business/business-news/2024/08/16/water-re-assets-to-bolster-ranhill-utilities
2 weeks ago
For water supply utilised mainly for cooling systems of DCs – data from RanhillSAJ shows that
it has received applications for 439.67m litres per day (MLD) of water between 2024 and
2035 from data centres. Of this amount, 316.38MLD have been supported, while the
remaining 30.51MLD have yet to be supported by the water operator.
The Johor State Government will look for additional water resources for future industrial use
with Johor Special Water, a subsidiary of state company Permodalan Darul Ta’zim, although
the current water supply in the state is sufficient at the moment. These include building new
water treatment plants and installing new piping to connect water sources to new areas, as
well as exploring new water sources through Johor Special Water.
source : Invest Johor 2024 by RHB 2024 Aug report
2 weeks ago
IB cannot see "New WATER Profit for RANHILL shall grow exponentially to =
439,670 units per day x ($3.55 - 1.05) x 365 days =$401 million p.a.!".
the IB who wrote that for RHB must be dumb
1 week ago
Wow , finally ranhill , ytl ,ytlpower all inside my portfolio for future multiple gains ! Happy to all in ytl , ytlpower duing yesterday waterfall !
1 week ago
Buy gloves 🧤 stocks to protect your capital ✅✅✅ plenty of it still not moving yet such Hexcare etc ✅
1 week ago
RANHILL
is the only stock to help YTLP grows its QR PAT by the QR.
Assuming Ranhill flies high by 200% from now to mkt cap $6 Bill, how much that contributes to YTLP's mkt cap?
YTLP's most recent QR said Ranhill contributed by '000s of million.
the math says;
$4 Bill gain x (53% stake x PE of 9) of ytlp = $19 Billion mkt cap added to YTLP!
don't u think the ytls n parties would do the best n easier biz i.e. to hoot.9.e n loot.9.e to RANHILL going forward?
https://www.tradingview.com/x/3kYZ5StZ/
NB:
1) As Ranhill rises in stock price, YTLP increases in QR PAT.
2) Invest Johor 2024 by RHB 2024 Aug report
Meditate on this Opportunity Line of 1's lifetime;
"For water supply utilised mainly for cooling systems of DCs – data from RanhillSAJ shows that
it has received applications for 439.67m litres per day (MLD) of water"
Therefore,
New WATER Profit for RANHILL shall grow exponentially to =
439,670 units per day x ($3.55 - 1.05) profit min per unit x 365 days p.a.
= $401 million humongous PROFIT p.a. on new H2O alone to DC!
1 week ago
Dont wait until ranhill np skyrocket u only chase high , now is the golden chance to buy in !
1 week ago
Data Centre theme gogogo make malaysia Great again, water daily use and only ranhill is water no water no life no business activities gogogo ranhill
1 week ago
https://www.orientaldaily.com.my/news/business/2024/08/27/675531
Next will be ranhill !
4 days ago
https://www.thestar.com.my/news/nation/2024/01/18/new-water-tariffs-for-johor-in-effect-from-feb-1
Wondering why increase in water tariff in Feb 2024 still couldn't more sales revenue in Q2 (1/4/2024-30/6/2024)?
3 days ago
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