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

0.735

Today's Change

0.00 (0.00%)

Day's Change

0.73 - 0.74

Trading Volume

904,700

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

0.735

Avg Target Price

0.87

Upside/Downside

+0.135 (18.37%)

Price Call

0

SELL

7

HOLD

22

BUY

Date Open Price Target Price Upside/Downside Price Call Firm View Action
Discussions
23 people like this. Showing 50 of 12,835 comments

cwc1981

Any expectations on coming result?

2 weeks ago

dragon328

I expect good earnings contribution from PowerSeraya but am wary of any negative surprise from Wessex

2 weeks ago

cwc1981

Thanks

2 weeks ago

cwc1981

Quiet only. Maybe earning so so

2 weeks ago

cwc1981

EPS 2 cents. Not bad.

1 week ago

observatory

The Singapore business (now under power generation segment) has shown good results. However I'm less sure about two other items. One is that the telco business continues to bleed. PBT loss was RM84m in current quarter. Anyway the underperfoming telco has been discussed before.

A new concern for me is finance cost has increased from RM240m a year ago to RM332m in the current quarter. Given the amount of borrowing (borrowings on the balance sheet are about RM2.8 billion), a substantial portion of the operating profit has been eaten up by interest payment.

Is the borrowing a bit too much given the rising interest rate? With hindsight should the proceeds from ElectraNet sales be used to pay down borrowing instead of getting into new projects?

Does it also mean the company is unlikely to raise dividend any time soon due to the heavy burden of interest payment?

1 week ago

dragon328

Contribution from PowerSeraya is encouraging, and there was no big negative surprise from Wessex with a small net profit.

On interest expenses, I agree with Observatory that this is sounding little alarm as it went up from RM240m last year quarter to RM332m in this Q1FY2023.

I see that total borrowings remained about RM28 billion as of 30 Sept 2022 while cash holdings increased slightly from last year. Most of these borrowings (estimated 2,315 million pounds or RM12.3 billion) sit at Wessex Waters level. We all know that the interest rates in the UK has gone up a lot recently to 3.0% in Nov from 0.2% last Nov. A 2.8% increase in interest rates will have resulted in RM12.2 bn x 2.8% /4 = RM85 million of increase in interest rate expenses. The rest of the interest expense increase was due to small rise in PowerSeraya.

A good thing is that interest rate hikes in the US and UK are set to slow down going forward.

The increase in interest rates will be compensated by higher water tariffs from next regulatory year from Apr 2023, so Wessex Waters just have to live with high interest expenses for next few months.

1 week ago

dragon328

YTL Power had cash holdings of RM7.4 bn as of 30 Sept 2022, so net debts amounted to RM28bn - RM7.4bn = RM20.6 bn.

An estimated debt of RM12.2 bn sat in Wessex, RM7.0 bn in PowerSeraya, RM1.5 bn in Jordan Power, so net debt in YTL Power amounted to RM20.6b - 12.2 - 7.0 - 1.5 = -RM0.1 bn or a nett cash position of RM100 million.

1 week ago

dragon328

Operating cashflows amounted to about RM494 million for this Q1, minus capex RM383m, there were still positive free cashflows of some RM111 million per quarter or RM444 million per year or 5.4 sen per share.

Operating cashflows should increase in following quarters as PowerSeraya reports stronger earnings and Wessex enjoys higher water tariffs from Q4FY2023, I think.

So I think YTLPI still has capacity to declare dividend of 5.0 sen min for FY2023.

1 week ago

observatory

@dragon328, thank you for providing the breakdown, and showing the effect of interest rate hike on Wessex Waters.

1 week ago

xiaochen

“With the entry into force of the agreement to purchase electricity generated from oil shale, the financial balance of the NEPCO will come under greater pressure next year,” the IMF statement said.

https://www.jordannews.jo/Section-113/All/Jordan-economic-reform-is-on-right-path-2-7-GDP-growth-envisaged-IMF-24639

1 week ago

xiaochen

2023, NEPCO have to purchase electric from APCO.

2023, APCO will in service.
2024, DC will in service.

1 week ago

dragon328

I do hope that the Jordan Attarat Power can start commercial operation soon, but I have no news on the arbitration case

1 week ago

hng33

Wessex water charge rate

From April 2022 our charges increased by around 4.5% compared to last year, for a customer receiving both water and sewerage services. Charges applicable from 1 April every year are published by 1 February.

We are now in the process of preparing our charges which will apply to bills from 1 April 2023. These charges will be confirmed on our website by 1 February 2023. Unfortunately, our prices will be increasing again largely due to high inflation.

1 week ago

xiaochen

@dragon328 The arbitration case still not ended, BUT through the flow of the case, APCO have higher possibility will win this case. And the market (IMF) is assuming NEPCO have to carry out his own responsibility.

Sooner or later, if you notice that YTLP share price suddenly shoot up 10-20 sens in a day which happened before, it possibility means that the case is finished.

1 week ago

xiaochen

YTLP stock price is easy to estimate.

From what im notice is, the market give this stock around 7% DY.

If the dividend given is 4.5 sens, the share price will fall around 65 sens.
If the dividend given is 5 sens, the share price will fall around 70 sens.
If the dividend given is 5.5 sens, the share price will fall around 78 sens.
If the dividend given is 6 sens, the share price will fall around 85 sens.
If you want the price shoot to RM 1, the dividend given should be around 7 sens.

i guess HLB is estimating this shock will provide 7 sens dividend in coming year.

1 week ago

xiaochen

For example, the latest analysis from Aminvest.

Source : AmInvest, Price Call : HOLD, Price Target : 0.75

So, the expected dividend is around 5.0 to 5.5 sens.

1 week ago

dragon328

@xiaochen, agree with you that YTLPI has been valued at about 7% dividend yield, but it has traded towards 5% yield at some times when the share price was almost RM2.00 when dividend was 10 sen.

I expect this to happen again from FY2024.

1 week ago

hng33

YTL JV with Strides Mobility, together with Airetec and Yes Energy formed a consortium that won a tender from the Land Transport Authority (LTA) to install, operate and maintain electric vehicle (EV) chargers charging points at Housing & Development Board (HDB) carparks in the Central and East regions of Singapore

https://stridesmobility.sg/wp-content/uploads/2022/11/Media-Release-Strides-Mobility-YTL-PowerSeraya-win-tenderto-build-public-EV-charging-pointsform-ChargEco-to-accelerate-Singapores-decarbonisation.pdf

1 week ago

hng33

Singapore plans to import up to 4GW of low-carbon electricity by year 2035F or about 30 per cent of its total supply.

YTL Power Seraya in Singapore has been selected for a two-year trial to import 100 megawatts (MW) of electricity from Peninsular Malaysia. YTL Power acquired 664 hectares (ha) of oil palm estates in Kulai, Johor from Boustead Plantations to develop the land into a large scale solar power plant with a generation capacity of up to 500MW. The first 100MW generate from these solar farm will be ready by end 2023 and start trial to export these low carbon electricity to Singapore by early 2024.

1 week ago

hng33

YTLP, wholly own subsidiary, YTL development.uk, is developing multibillion Brabazon Park in UK. will be the largest new urban park in the south west for over 50 years.

The design of the Park takes inspiration from aviation engineering, aiming to capture the historical, cultural and ecological uniqueness of the former airfield

https://ytldevelopments.co.uk/latest-news/plans-approved-for-brabazon-park

1 week ago

hng33

YTL Data Centers is the digital infrastructure arm of YTL Power International Berhad, which is headquartered in Malaysia and listed on Bursa Malaysia.

Supported by a diverse network of experts with both global and local expertise, we build data centres designed to optimise energy efficiency, scalability and reliability.

To enable the sustainable growth of today’s data-driven world, we have a goal to power our data centres across the South East Asia region with 100% clean and renewable energy.

This starts with our bold vision to build a Green Data Centre Park in Johor, Malaysia, which will be powered by up to 500MW of renewable energy through solar farms planted within the site.

YTL’s Johor Data Center 1 is located in the Iskandar region in Johor, Malaysia. It is a 530,000 sqft development, power by 72MW solar capacity. The first data center is 3-storey building consists of 2 wings of Data Hall suites and M&E rooms. It has 8 Data Hall suites spread over 2 wings per floor (total of 24 Data Hall suites). The Data hall is use for provision of onsite office space, storage and parking facilitie.

YTL data center also partner GDS Holdings Limited co-develop 168MW of data center capacity, across 8 individual data center facilities, at the upcoming YTL Green Data Center Park in Johor, Malaysia. The first phase of the co-development will enter service in 2024.

The 500MW solar power generate aside use to supply green energy to power up initiate 72MW + 168MW Data center, it also use 100MW to export to Singapore under 2 year pilot green power supply agreement with Singapore

1 week ago

xiaochen

@dragon328, hopefully FY2024 will be boosting year for YTLP. 5% DY is achievable provided the company keep increase their net profit. 10 sens of dividend, is very possible for YTLP, if with the aid from APCO and DC.

1 week ago

xiaochen

YTL Power to spend RM15bil on data centre

https://www.thestar.com.my/business/business-news/2022/11/29/ytl-power-to-spend-rm15bil-on-data-centre

Haha, this analysis is estimating 6 sens dividend for FY2023...If really 6 sens, huat liao.

1 week ago

hng33

bought ytLp at 70.5sen

1 week ago

hng33

added more ytlp at 71sen

1 week ago

xiaochen

All telco in Malaysia make money, Tunetalk, Time.com, U-mobile, even XOX all make money, ONLY YES is no.

Can you imagine 84m lose per quarter? It's means the net profit is cut down 1 sen per share.

YTLP got 8.158b of share.
84m / 8.158b = 0.01. This is per quarter.
YES are famous of its loses all around the year, so total lose will be at least 0.04 sens per year.

If all this 0.04 sens turn into dividend, and share among share holders, what will happen to the stock price?

1 week ago

xiaochen

The worst part is, YES never bankrupt!
YES will endlessly continue act like parasite, never contribute but asking fund aid from mama.

1 week ago

dragon328

Yes xiaochen, we can certainly look forward to at least 7.0 sen dividend from FY2024.

This is after Wessex water tariffs start to reflect the higher inflation and higher interest rates from 4QFY2023 onwards, and PowerSeraya continues reporting strong earnings due to tight supply market in Singapore.

6 days ago

dragon328

Then from Q3FY2024 onwards, we shall see maiden contribution from the 100MW green power export to Singapore (for 2 years) and the first green data centre park in Kulai

6 days ago

dragon328

The Star article reported that Wessex would report higher revenue of RM257 million in 2023, that would flow directly into the bottom line.

YTLPI reported a tiny earnings contribution of RM20m pretax profit from Wessex in its Q3FY2023. Imagine that from Q4FY2023 Wessex shall report RM257m/4 = RM64 million of extra profit, quarterly PBT contribution from Wessex shall increase back to the "normalised" RM80-90 million per quarter.

Add the RM289m PBT contribution from PowerSeraya, PBT shall top RM300m per quarter if we allow continued RM70m loss for the telco business. Annualised pretax will come to RM1.2 billion and net profit may come to RM900 million or EPS of 11.0 sen

6 days ago

cwc1981

Wah 11 cents. 50percent payout also good liao

6 days ago

dragon328

I think the management will be very generous in dividend payout from FY2024, it should be over 70% payout, or at least 7.7 sen dividend from FY2024.

In fact, operating cashflows will be stronger than the projected RM900m net profit as we add back depreciation charges, but we need to set aside RM750m - 900m capex for each year mainly for the development of green data centre and solar farm installation, so free cashflows may come back to RM900-1,000 million.

6 days ago

xiaochen

Date: 2022-11-29
Firm: HLG
Stock:YTLPOWR
Price Target: 1.08
Price Call: BUY

So, @dragon328 is estimating exactly the same amount of dividend paid as HLB is estimating.
Big possibility will come true.
Huat ah.

6 days ago

10bagger10

Dragon sifu, ytl or ytlpower which one more undervalue

6 days ago

dragon328

@xiaochen, I thought Hong Leong analyst only projected net profit of RM545 million and dividend of 4.5 sen for FY2023? It is from its report dd 25 Nov 2022.

Is there an updated report on 29 Nov? Pls share

6 days ago

dragon328

@10bagger10, I am no sifu, just a retail investor who spends more time in studying these companies' businesses and financials.

To me, YTL Corp is more undervalued in the longer term as it owns stakes in YTL Power, YTL REIT, Singapore Starhill REIT, the largest tract of urban land in KL Sentul, the largest tract of land in Japan Niseko, the largest cement company in Malaysia with dominant 67% market share. But some of these assets take longer time to realise their potential, eg. Niseko land and Sentul land. The immediate catalysts are expanding earnings from YTL Power and MCement.

6 days ago

dragon328

YTL Power will give you higher dividend yield in near term, which may be as high as 10% from FY2024, as its PowerSeraya multi-utilities business is already reporting exponential growth in earnings and strong cashflows.

Next for YTLPower will be for Wessex to report normalised earnings from Q4FY2023 and for its green data centre to start contributing meaningful earnings from Jan 2024.

6 days ago

cwc1981

Good good can't wait

5 days ago

10bagger10

Thank you so much for your sharing.

5 days ago

hng33

sold back ytlp at 76sen, locked profit

5 days ago

dragon328

I think the last minute buy up was by a foreign fund, the same happened to MRDIY

2022-05-23 13:42

cwc1981

TNB too?

2022-05-30 14:52

xiaochen

@dragon328, HLB didn't mention about the exact dividend, im just assuming HLB is estimating 7 sens divident through 7% DY of their target price for YTLP. So, dont be too serous, you didnt miss anything from their analyst report.

5 days ago

10bagger10

Mr dragon, is ytlp currently in net cash position?

1 day ago

10bagger10

When will ytlp receive the money? Is it next q?

1 day ago

dragon328

@10bagger10, as I estimated before, YTL Power had a net debt of RM0.8 billion at the holding level after deducting off those debts ring-fenced at subsidiary levels (est. RM12.8bn in Wessex, RM5.4 bn in PowerSeraya, RM1.5 bn at Attarat Power).

After the disposal of Electranet, YTLPI has received about RM2.0 billion of cash and hence has turned into a net cash position at the holding company level with net cash of about RM1.2 billion, based on my own estimation.

17 hours ago

10bagger10

Thank you for the hardwork

1 day ago

Post a Comment