YTL Power

[winston]

not vested

6742 YTLPOWR (BUY)
DC and LSS making progress

YTLP started weak with core PATMI RM625.9m (-24.7% QoQ; -19.4% YoY) in 1QFY26, below our FY26 forecast (19.2%) and consensus (22.3%), dragged by weaker than expected electricity pricing and margins of SG PowerSeraya.

Nevertheless, we expect YTLP performance to gradually improve in coming quarters, supported by UK WessexWater, Ranhill, LSS and DC contributions.

Despite earnings cut for FY26-27m, we remain positive on YTLP’s outlook, maintain BUY recommendation with a lower TP: RM5.08 (from RM5.55), based on 10% discount to FD SOP: RM5.65.

Source: HLIB

[winston]

not vested

6742 YTLPOWR (BUY)
DC and LSS making progress

YTLP started weak with core PATMI RM625.9m (-24.7% QoQ; -19.4% YoY) in 1QFY26, below our FY26 forecast (19.2%) and consensus (22.3%), dragged by weaker than expected electricity pricing and margins of SG PowerSeraya.

Nevertheless, we expect YTLP performance to gradually improve in coming quarters, supported by UK WessexWater, Ranhill, LSS and DC contributions.

Despite earnings cut for FY26-27m, we remain positive on YTLP’s outlook, maintain BUY recommendation with a lower TP: RM5.08 (from RM5.55), based on 10% discount to FD SOP: RM5.65.

Source: HLIB

[winston]

not vested

A slow start

Sequentially lower earnings YTLP’s 1QFY26 results missed our expectations due to lower-than expected PowerSeraya earnings.

We think concerns over the monetisation of DC/AI compute are gradually being priced-in as investors digest a delay in the full AI compute rollout and await a meaningful earnings contribution from the business.

Maintain HOLD with a lower SOP-based TP of MYR3.80 (from MYR4.25) following our earnings cuts.

Source: Maybank

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[winston]

not vested

YTL Power International Compressed margins at Power Seraya

1QFY26 saw notably weaker earnings from Power Seraya but this was partly negated by sustained strength at Wessex Water.

Profits from Power Seraya may see further erosion as its gas contracts get repriced and supply tightness ease with new capacities entering the market.

Maintain Hold with a lower SOP-based TP of RM3.30.

Source: CGS

https://rfs.cgsi.com/api/download?file= ... CF10925A05

[winston]

not vested

6742 YTLPOWR (BUY)
Supported by water, DC and LSS

YTLP posted core PATMI of RM587.2m in 2QFY26 (-6.2% QoQ; -12.1% YoY) and RM1.2bn in 1HFY26 (-16.0% YoY), broadly in line with our FY26 forecast (46%) and consensus estimates (49%).

We are comforted by the easing decline in earnings at Seraya. The tariff hikes for Wessex and Ranhill are expected to underpin stronger group earnings, while the scheduled COD of DC and LSS projects should provide earnings uplift progressively.

We remain positive on YTLP’s prospects and reiterate our BUY call with an unchanged TP of RM5.08, based on a 10% discount to our FD SOP valuation of RM5.65.

Source: HLIB

[winston]

not vested

6742 YTLPOWR (BUY)
YTLDC to accelerate growth

YTLP is seeing active enquiries by US-based DC operators/developers to expand in Malaysia, supported by its strategic partnership with Nvidia.

With 300MW of capacity already secured, YTLDC is guiding for an aggressive expansion of 200MW annually, targeting a total capacity of 1.4GW by 2031 and potential annual EBITDA of RM6.5bn.

SG PowerSeraya remains largely insulated from rising gas costs, as higher fuel prices are passed through via higher electricity tariffs.

WessexWater is also poised for growth, with its RAB expected to expand to GBP7.5bn by 2030, further supported by inflation-linked adjustments.

We remain positive on YTLP’s outlook and reiterate our BUY rating, with an unchanged TP of RM5.08 (10% discount to FD SOP).

Source: HLIB