Price Target Analysis: YTLPOWR (6742)

Aiyoh! What happened? Today no time to look only have time look now already 4.08. Ular apa hal ini? Ular oh ular, kura kura hari hari take smalll step at a time. Haiyoh! Korek??? Wakakaka

5 hours ago

OTB

Please note that the following indexes are breaking new highs today.
FBMKLCI
FBMEMAS

The share price of Tenaga is also breaking a new high today.
The share price of YTLPower is not breaking new highs despite it is trading at a lower PER.

EPS of Tenaga = 47.87 sen
The share price is 11.88
PER = 24.82

EPS of YTLPower = 40.90 sen
The share price is 4.06
PER = 9.90

I believe there is no war in the Middle East.
I believe the US stock market will not drop a lot this week because the earnings of most stocks are better than expected.
The share price of Nvidia dropped 10% on 19/4/2022, but the share price of Nvidia rebounded very strongly in the last few days.
Hence the possibility of a stock market crash in the US is very slim now.

The share price of YTLPower is bullish now.
The major resistance is at 4.07 and follows by 4.24.
4.24 is the all time high price.
The share price of YTLPower has consolidated around 12 weeks, I believe the share price of YTLPower should break new highs like Tenaga.
I also believe the Q3 2024 result of YTLPower to be released in May 2024 will be very good.
The projected EPS of YTLPower for FY 2024 should be > 0.42 sen.
The average PER of FBMKLCI component stocks is around 15 times, the present PER of YTLPower is < 10.
Hence the present share price of YTLPower is still undervalued.

I talk with facts and figures.
Use this posting as a reference only.
The final decision to buy is always yours.

Thank you.

5 hours ago

What happen? Last minute ular panic buying kah? Haiyoh! Korek??? Already give hint that day when right hand to left hand and then more rights to left many people laught me duno how to read. Haiyoh! Now who korek???? Duno how to read have benefits lor. Haiuoh! Korek? Wakakakakakakak

5 hours ago

Ini ytlp now at level 4 now.. no lore level 3 after taking so much onslaught and taking it well…..this daughthy ah moi is looking to ay ard level 4 now, aiming to go level 5. Haiyoh! Korek? Wakakak

5 hours ago

Raymond Tiruchelvam

OTB is back ..... with facts vengeance :-) peace.... one Q for OTB > is there any upside to YTLP earnings for 2024? Other than RM S$ UKpound exch rate? If no upside, then there will be no impetus for market to raise PE ratio.... many companies are trading at 10 PE

5 hours ago

I echo Mr. OTB's view on YTL Power share price movements, it should break new highs in next few days or weeks.

On the other hand, after studying the report by CLSA and doing more detailed calculations, I find that the EBITDA margin for YTLPower's AI data centre business can be as high as 84%. This is higher than the typical range of 65%-80% as YTLP enjoys lower electricity prices (lower if it installs more solar power at the site) and water costs, compared to other countries like Singapore.

5 hours ago

I retain my view that YTL Power remains the cheapest big cap in Bursa with forward PER of around 10x only, compared to PER of well over 20x for other utilities stocks such as Tenaga and PetGas.

I think local analysts will find it harder to justify a fair value of RM4.00-4.20 for YTL Power going forward, especially when Tenaga share price has broken new high, and as YTL Power delivers another set of resilient earnings for Q3 FY2024.

5 hours ago

Raymond…there are many impetus that have not beem factored in as many local IB is very takit tobmake a stand.. for instance, earnings from data center, water earnings to improve

5 hours ago

@Raymond Tiruchelvam, I do not see any other big cap trading at 10x PER, most are above 20x PER. Please let me know if you find any. Hence it is unjustified for YTL Power to trade at 10x PER for a company that earns over RM3.0 billion a year and growing big in next 2 years.

Don't compare it to the small caps, some are trading at PER of 10x or below due to various reasons - earnings boosted by one-offs, small cap, not liquid, management not proven etc.

I also can find one - KSL which is a smaller cap property developer. The reason it is trading at just 4x PER is because the company has not declared any single sen of dividend since 2015, while the company directors are getting bigger pays every year.

YTL Power is different, it is a lot bigger with market cap of over RM32 billion, almost within the top 10 big caps in Bursa. It has consistently declared dividends over the years, non-stop even when the company was making little profit in 2017-2020. During Covid years , the company directors did not get any bonus, some more willingly took a 10% pay cut. More importantly the management continuously innovates to diversify and bring in lucrative deals to make the company profits scaling new heights year on year, as we have seen for FY2023 and FY2024. FY2025 will be another record year in profits. And I project new record earnings for FY2026, FY2027 and well into FY2029 when PowerSeraya's new 600MW hydrogen ready CCGT is operational.

5 hours ago

Don't get me wrong, KSL is a good company. I did buy some of its shares for long term investment as I believe eventually KSL management will realise how important dividend payouts are to the company as a listed one and to shareholders.

After all, we invest in listed company shares only for 2 purposes - to get dividends every year and to enjoy any share price appreciation.

If a listed company does not declare dividend but keep all cash to itself and to its directors, the share price will not move and minority shareholders get nothing.

For YTL Power, we can expect higher dividend payouts for FY2024 and beyond as the company profits scale new record highs.

5 hours ago

2721

Hopefully got 3-4% DY this year

5 hours ago

Otb and otb macai banned me for many days

5 hours ago

Use money to bank me with I3 admin

5 hours ago

Ikan bilis beware of Scammer OTB

5 hours ago

Beware of OTB the scammer

OTB
Please note that the following indexes are breaking new highs today.
FBMKLCI
FBMEMAS

The share price of Tenaga is also breaking a new high today.
The share price of YTLPower is not breaking new highs despite it is trading at a lower PER.

EPS of Tenaga = 47.87 sen
The share price is 11.88
PER = 24.82

EPS of YTLPower = 40.90 sen
The share price is 4.06
PER = 9.90

I believe there is no war in the Middle East.
I believe the US stock market will not drop a lot this week because the earnings of most stocks are better than expected.
The share price of Nvidia dropped 10% on 19/4/2022, but the share price of Nvidia rebounded very strongly in the last few days.
Hence the possibility of a stock market crash in the US is very slim now.

The share price of YTLPower is bullish now.
The major resistance is at 4.07 and follows by 4.24.
4.24 is the all time high price.
The share price of YTLPower has consolidated around 12 weeks, I believe the share price of YTLPower should break new highs like Tenaga.
I also believe the Q3 2024 result of YTLPower to be released in May 2024 will be very good.
The projected EPS of YTLPower for FY 2024 should be > 0.42 sen.
The average PER of FBMKLCI component stocks is around 15 times, the present PER of YTLPower is < 10.
Hence the present share price of YTLPower is still undervalued.

I talk with facts and figures.
Use this posting as a reference only.
The final decision to buy is always yours.

Thank you.
47 minutes ago

5 hours ago

Raymond Tiruchelvam

Thanks dragon328 and Agjl.... for your feedback appreciate it. As you know market prices shares on a forward footing rather than todays and past earnings, tenaga's PE of 25 could just be the market's forward perception of the incremental earnings.... meaning at the point of higher earnings maybe 1 year from now at the same current price the PE could go down to 15 .... so how can I apply this to YTLP? Is the market behaving the same and valuing YTLP at also 15..... assuming earnings will reduce perhasp 1 year from now, and at same current price the PE will equate tenaga? Is this s a possibility? End of day its all relative..... we invest not bekos its big cap but because it will appreciate and pay divs.... im looking at my aeon credit so little hype but slowly and surely increasing almost daily in price..... and I have so little invested here errggggh heeee.... :-) peace

4 hours ago

Apple888

Hold tight ytl power.
This year going to be ytl power show again.
Full year net profit above 3.2bil

3 hours ago

OTB

Jerichomy,
To me, you are a mad guy just released from Tanjung Rambutan hospital.
You are a no brain person, simply talk without facts.
You are also a shameless liar here and continue to tell lies in this forum.
Do not overrate yourself, you are an useless person who cannot contribute any benefit to this forum except copy and paste all irrelevant postings in this forum.
I do not need to tell the admin to ban you because you have no value in this forum.
I do not want to waste my time on you.
You are a no brain and a mad person here.
Thank you.

2 hours ago

OTB

Posted by Raymond Tiruchelvam > 3 hours ago | Report Abuse

OTB is back ..... with facts vengeance :-) peace.... one Q for OTB > is there any upside to YTLP earnings for 2024? Other than RM S$ UKpound exch rate? If no upside, then there will be no impetus for market to raise PE ratio.... many companies are trading at 10 PE
-----------------------
The EPS for FY 2023 is 0.25.
The projected EPS for FY 2024 is around 0.42. A growth of 68.0% over FY 2023.
The projected EPS for FY 2025 will be 0.52. A growth of 23.8% over FY 2024.
The projected EPS for FY 2026 will be 0.62. A growth of 19.2% over FY 2025.
YTLPower will show a strong growth from FY 2024 to FY 2026.
Hope I have answered your question.
Thank you.

2 hours ago

@Raymond, yes the stock market is forward looking. For Tenaga's current PER of 25x to fall to 15x, its earnings will have to increase by 67% by 2025. Now you need to make an assessment as to whether this is possible or not. Tenaga business is in the steady power generation and transmission, with the 1%-2% electricity demand growth in Peninsular Malaysia and with the electricity tariffs fixed, how could Tenaga possibly increase its earnings by 67% in one year??

I seriously doubt it.

One of the reasons why YTL Power is only trading at forward PER of just 10x is because local analysts play down on its earnings growth, eg. some always use the excuse of "normalisation" of PowerSeraya earnings by 2026 without giving much detailed calculation to justify the low earnings projection. The reason why local analysts play down on YTL Power earnings prospects and valuation is mainly because most of them missed out on the share price rally of YTL Power and completely wrong footed on the explosive earnings growth of PowerSeraya. Some of them have even advised local funds like EPF to sell off YTL and YTL Power shares. So now they cannot be seen as slapping their own face by projecting good earnings prospects of YTL Power and giving a high target price.

But things are changing now as local funds seem to be ignoring these local analysts' recommendation and started accumulating shares of YTL Power since March 2024.

Some of these local analysts are becoming the "Buy" call advisors to the local funds, and will soon upgrade YTL Power to higher targets once their clients have accumulated enough stocks.

To me, there is no reason why YTL Power should be trading at a low PER of 10x. I would argue for a fair PER of 15x for such a big cap with strong earnings growth.

To take note is that the long term average PER of US stock markets is 15x and the long term average PER of Bursa component index stocks is 15x to 20x.

I am taking the lower end of the Bursa average PER range.

1 hour ago

Let's see the share price performance once a bad news pop up. No other good news to drive the share price up.

Just wait to drop only. Don't risk your money buy this stock. No worth it.

1 hour ago

When you do a check on the valuation of KLCI 30 component index stocks, you will find that most of them are trading at PER of over 15x, many at over 20x with dividend yield of less than 3%. But they still get local funds' support just because they are GLCs and local funds have substantial holdings in each of them.

But local funds are also under pressure to perform, otherwise the fund managers will be out of the job. When they check through the big caps in Bursa, they will find that YTL Power is among the cheapest stock. Once they get comfortable with the fact that YTL Power earnings will stay resilient over next few quarters, they will think YTL Power is trading at unjustifiably low valuation and gradually accumulate the shares.

When more funds think the same, and as YTL Power grows further as new earnings stream kicks in, the valuation becomes even cheaper and more funds will then rush in to buy. It is the fear of losing out (FOLO) that will drive the share price higher.

This situation will become more apparent when YTL Power announces a good news (likely in coming weeks) or another set of good results in May end, foreign funds will jump in again to scoop up the shares.

1 hour ago

https://fortune.com/2024/04/23/nvidia-amazon-morgan-stanley-10-stocks-to-buy/

1 hour ago

MrFox

good read!!! syabas!

1 hour ago

SC724

Thank you dragon 328 for the encouraging news

59 minutes ago

Anak Ularsawa long time no see. Still remember last time I sent you in jail??

56 minutes ago

Siapa sent UlarSawa to jail? Hari ini aku punya satu aka masuk jail juga

52 minutes ago

Kesian Ularsawa kena promoters sent to jail leh. Siapa so black hearts send Bapak Ularsawa masuk jail leh. No wonder semua promoters pun keluar promote YTLP beramai ramai leh. Macam mau con Suiyee when Bapak Ularsawa not around jadi referee leh. Kesian. Haiyoh. Correct?

38 minutes ago

Due to Bapak Ularsawa in the jail now. Bapak Ularsawa requested his anak to be the new referee to continue the competition lagi. Haiyoh. Correct?

38 minutes ago

Why you so happy to see Bapak Ularsawa masuk jail kah. Your twin MikeTikus is inside the jail until June leh. More longer in the jail than Bapak Ularsawa leh. Kesian. Haiyoh. Correct?

Johnchew5

Hoho finally 🐍sawa kena juga … now is more easier to flag it after the suspension… hohoho

UlarSawa
UlarSawa | Joined since 2020-11-28

Due to repeated abuse posts, this account has been suspended from posting to the i3investor portal until 2024-05-15. Please refer to the Terms and Conditions of Use or Community Standards of this portal.
Investing Experience -

7 hours ago

38 minutes ago

apak Ularsawa asked anakularsawa to remind the public ada number 700 mau jaga jaga leh. Tak mau jadi Suiyee to make them jadi instant Millionaires leh. Always remember this number 700 leh. Thats what Bapak Ularsawa want you all to remember this especially Suiyee leh. Haiyoh. Correct?

37 minutes ago

focus on how to make money la Ular...

37 minutes ago

Do anakularsawa know you kah. Sori. Takda perasan siapa you leh. You reincarnated from what animal one. Can tell kah. Haiyoh. Boleh?

Exorcist

Anak Ularsawa long time no see. Still remember last time I sent you in jail??

6 minutes ago

37 minutes ago

stop unnecessary boliao fightings Ular
that only for people come here pass time only...

35 minutes ago

You memang don't know me. You ask your bapa UlarSawa in next jail visit who am I loh. But last time who sent you to jail you cannot remember meih??

34 minutes ago

Bapak Ularsawa ada makan kfc today after shopping last week one leh. He ada cakap in the cave leh. Lagi ini hari Bapak Ularsawa for the first time beli HK stock leh. mau bet HK listed China |Chip maker that made Huawei chip one leh. Haiyoh. Correct?

xiaoeh

focus on how to make money la Ular...

28 seconds ago

34 minutes ago

that's fine that's fine...

33 minutes ago

Ularsawa jadi referee at here is doing charity job leh. Mau remind the Suiyee berhati hati di jalan Bursa leh. Mana ada fighting lah. You see wrongly lah. Haiyoh. Correct?

xiaoeh

stop unnecessary boliao fightings Ular
that only for people come here pass time only...

1 minute ago

32 minutes ago

don't want to disturb people here whose really do homework one liao
i'd better keep quiet and leave now
good luck all

31 minutes ago

Last time sent anakularsawa to jail was Felix siblings mah. you are felix reincarnated kah. Haiyoh. Correct?

Exorcist

You memang don't know me. You ask your bapa UlarSawa in next jail visit who am I loh. But last time who sent you to jail you cannot remember meih??

1 minute ago

30 minutes ago

Anakularsawa mari is bcos Bapak UlarSawa asked me to be the referee leh. Not kacau the promoters leh. THey still can promote mah. No one not allow them to do so mah. Tapi tak mau con Suiyee lah. Haiyoh. Correct?

xiaoeh

don't want to disturb people here whose really do homework one liao
i'd better keep quiet and leave now
good luck all

37 seconds ago

29 minutes ago

FelixMotherBukaKaki

Hello Ular, welcome back
I created UlarSawa700 but could not give you the name in public..since you could not analyse it..the time clock will SELF DESTRUCT in 3 hours.
Anyway Felix and her mother now sit on Monks HEAD to recite AMITABHA,,as the gyrate their ci bai on monks head
In my boss buddhist monastery lah
Haiyoh Correct?

15 minutes ago

FelixMotherBukaKaki

14 minutes ago