YTL Power

[winston]

vested

YTL Power's AI-DC prospects remain intact

Expectations of improved earnings from Wessex Water and growth prospects from the artificial intelligence-data centre (AI-DC) venture.

Earnings moderation for electricity generator YTL Power Seraya during the quarter was largely anticipated due to weaker pool prices and lower retail margins.

"We reckon such earnings normalisation will happen gradually in FY25 and FY26 as retail contracts still accounted for more than 70% of the output".

Wessex water utility to recover more meaningfully in FY25, backed by annual tariff adjustments.

YTL Power is still in discussions to lock in off-takers for the first 100MW Phase 1 AI-DC.

YTL Power is a potential beneficiary of the strong RE growth trajectory under NETR, particularly for RE exports given its presence in the Singapore power sector".

Source: The Star

https://www.thestar.com.my/business/bus ... ain-intact

[winston]

Time to take a breather

Power Seraya net profit started to normalise in 3QFY6/24 but losses at Wessex are narrowing. Telco segment suffered from lower project revenues.

We lift our SOP-based TP to RM5.50 and downgrade the stock to a Hold. Investors have, in our view, baked in sizeable value for its DCs.

While DC construction works are seeing good progress, take-up rate needs to gather pace and details forthcoming to justify further re-rating, in our view.

TP: 5.50

At current prices, the market has baked in ~RM12.5bn in value for its DC business, in our view, but now takeu p rate needs to pick up and details revealed to justify further re-rating.

Downside risks: execution setbacks and market risks for DC projects, heavy capex leading to increased gearing.

Upside risks: higher-than-expected off-takers and rates for the DC facilities.

Source: CIMB

https://rfs.cgsi.com/api/download?file= ... 782B3F1AEF

[winston]

not vested

MULTIPLE PROPOSALS YTL POWER INTERNATIONAL BERHAD ("YTLPI" OR "COMPANY")
(I) ACQUISITION; AND
(II) UNCONDITIONAL MANDATORY TAKE-OVER OFFER ("MTO") (COLLECTIVELY REFERRED TO AS "TRANSACTIONS")

https://disclosure.bursamalaysia.com/Fi ... TTACHMENTS

[winston]

not vested

YTL Power’s Ranhill acquisition a positive

Strengthen the company’s position in the lucrative Malaysian utilities space.

Strengthening its footprint in Johor, given its ambitious data centre development.

Ranhill is estimated to generate a net profit of RM47mil-RM55mil in financial year 2024 (FY24) to FY26, which at a 53.19% stake is less than 1% of YTL Power’s FY25 estimated earnings.

The deal also gives YTL Power access to the Sabah electricity market whereby Ranhill controls the largest independent power producer share, solidified further by a new 100-megawatt (MW) combined cycle gas turbine due for commercial operation date in 2026.

Source: The Star

https://www.thestar.com.my/business/bus ... a-positive