YTL Power

[winston]

not vested

Wessex Water: back in the driver’s seat

We see an imminent turnaround at Wessex Water, which should partially mitigate the impact of a potential drop in contribution from Power Seraya.

YTLP is currently exploring growth projects that could add incrementally to earnings over the next 3-5 years, largely within the renewables space.

We reiterate our Add rating with a higher SOP-based TP of RM3.00.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 51B815AE27

[winston]

YTL Power data centre ‘underappreciated’

YTL Power International Bhd’s “underappreciated” data centre business fetches a valuation of RM6.3bil or one-fifth of the group’s total market value of over RM32bil.

On Wessex Water, HLIB Research said the company is expected to turn around in the financial year ending June 30, 2025 (FY25).

YTL Power’s electricity producer in Singapore, PowerSeraya Pte Ltd, would see its strong earnings and cash flow sustain into the foreseeable future.

Source: The Star

https://www.thestar.com.my/business/bus ... e=smartech

[winston]

not vested

YTL Power’s Singapore unit commissioned to build hydrogen-ready power plant worth S$800m

By Emir Zainul

The power plant is estimated to cost S$800 million (approximately RM2.82 billion) and is targeted to be completed by Dec 31, 2027.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/698982

[winston]

not vested

YTL Power rebounds after strong 2Q results, analysts still have 'buy' calls

By Jason Ng

Strong growth prospects of its data center business that will complement its steady earnings from power generation and water-and-wastewater services.

Net profit for the three months ended Dec 31 jumped four times to RM845.12 million from RM198.82 million over the same period last year.

Quarterly revenue rose 14.26% year-on-year to RM5.37 billion from RM4.7 billion lifted by all key segments.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/702050

[winston]

not vested

YTL Power International
Sizeable uplift from new assets

Our initial calculations suggest that YTLP’s ~RM22bn investments in DCs over the next 3-5 years can contribute as much as RM1.2bn-1.4bn in net profit.

The DCs, coupled with the recently secured new gas plant in Singapore, can enhance YTLP’s net attributable equity value by ~RM11bn, on our estimates.

We raise our FY25-26F EPS by 38-63% and TP to RM4.50 to factor in these new assets. Add maintained given brighter prospects for the DC business.

Source: CIMB

https://rfs.cgsi.com/api/download?file= ... F6EF78AD28

[winston]

Encouraging operational developments

Earnings outlook for Wessex looks set to improve on the back of upcoming tariff adjustments; we expect it to return to the black as early as 3QFY6/24F.

YTL Power International’s (YTLP) DCs are progressing well, and we are hopeful of positive newsflow on potential off-takers by mid-2024F.

We see the recent pullback in share price as good accumulating opportunity.

TP: 4.50

Source: CIMB

https://rfs.cgsi.com/api/download?file= ... 2AA4B30573

[winston]

not vested

At the forefront of AI computing in SEA

YTLP announced that it will be among the first companies in SEA to adopt NVIDIA’s just launched superchip, GB200, at its DC campus in Johor.

The GB200 infrastructure promises a 30x performance increase and reduces cost and energy consumption by up to 25x over its predecessor H100.

We reiterate our Add rating with an SOP-based TP of RM4.50.

Source: CIMB

https://rfs.cgsi.com/api/download?file= ... 89AA5629DC

[winston]

not vested

May 6, 2024

Investment Highlights

We maintain BUY on YTL Power International (YTLP) with a higher SOP-based fair value of RM6.25/share vs RM5.10/share previously.

Our revised fair value implies FY25F PE of 16x and FY26F PE of 13x. We ascribe a 3-star ESG
rating to YTLP.

We have accounted for the FY26F earnings potential of data centres (DCs) in YTLP’s SOP
valuation. Previously, we used the asset value of the DC in our SOP estimate.

We have raised YTLP’s FY25F net profit by 1% to account for earnings from YTL Sentul DC 1 (5MW) and the non-AI section of YTL Joho DC 1 (8MW).

For FY26F, we have raised YTLP’s net earnings by 27% to account for earnings from the AI
section of Johor DC 1. We have also assumed that SEA would take up another 8MW o the non-AI
DC in FY26F.

We believe that FY26F is a better reflection of the earnings potential of the DCs as there would
be a full-year impact o the 100MW AI DC in Johor. The AI DC is expected to star operation at the end of 2024F.

As for the non-AI section, SEA is anticipated to move in this month and take up 8MW o capacity. Eventually, SEA would be taking up 48MW o capacity in total.

We think that the net profit of the 100MW AI section of Joho DC could potentially be more than RM1bil per year. This is based on a net profit margin of 20% on revenue of RM7bil.

YTLP’s outlook is positive. Earnings growth is expected to come from the DCs while YTLP Seraya
in Singapore provide a stable and recurring base underpinned by locked-in profit margins.

YTLP DC’s competitive edge lies in its partnership with Nvidia coupled with cheap land and
energy costs.

YTLP is currently trading at a FY25F PE of 12x, which is marginally below its 2-year average of 13x.

Source: AmInvest

https://klse.i3investor.com/web/staticfile/view/540489

[winston]

not vested

3Q Earnings:-

Revenue: -3%; RM 5.2b
EPS: +34%; 8.62; RM 700m
Net Asset Value: 2.40

https://www.bursamalaysia.com/market_in ... id=3449365

[winston]

vested

YTL, related stocks snap rally after 3Q results

By Hee En Qi

CGS International said the take-up rate for the group’s data centre business needs to increase, especially after the market has already factored in its over RM12 billion in value. The research house pointed out potential downside risks, including execution setbacks and market risks associated with the data centre projects, as well as significant capital expenditure that could elevate gearing.

Nevertheless, the house assumed a higher earnings before interest, taxes, depreciation, and amortisation (Ebitda) margin of 80% from 65% for FY2027, once capacities of the data centres are fully ramped up, with further clarity of the potential profitability of such operations.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/712825