Hi Sir, I feel in at least a year's time the golden harvest from AI Datacentre will roll in.

Posted by myloh123 > Feb 25, 2024 5:22 PM | Report Abuse

@Goldberg , by when do we see d harvest of AI dara center collaboration wid Nvidia coming in full swing...this year?

YTL & YTLPOWR: A Powerhouse Performance - Is This Stock a Must-Have in Your Portfolio?
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Author: KingKKK | Publish date: Fri, 23 Feb 2024, 7:54 AM

Dragon328 has written a comprehensive article about YTL and YTLPOWR earnings yesterday, the details in the link below.

YTL & YTL Power - Ended Year 2023 with a Bang

I will summarize his article into pointers below:

1. Superb earnings: YTL Power's net profit was RM845 million, a surge by 325% against similar quarter last year. PowerSeraya, Wessex Water, and Jordan Attarat Power were the main profit drivers.

2. YTL Power is worth minimum RM6.30: dragon328 said that It should at least trade at 15x PER or RM6.30 per share to be comparable with Tenaga which has similar profit level of over RM3.0 billion.

3. YTL is worth RM4.00: dragon328 said that it should be trading at PER of about 20x (to be on par with Sunway) or RM4.00.

My view:

1. Agreed, YTL Power and YTL are both undervalued at the current price level. The article by dragon328 is great, and his speed in producing it is superb!

2. After reporting strong earnings, NVIDIA's share price surged by 16%, breaking some world records. Details can be found in the news below:


(NVDA) Nvidia Tops Meta Record With $277 Billion Jump in Value - Bloomberg

I think the price direction will follow NVIDIA's for both YTL and YTLPower.

3. If you think AI and Data Centers are already over just because YTL and YTLPower have increased significantly, you may be assuming that the AI and Data Center businesses have already peaked. This is similar to 30 years ago when Microsoft Office began revolutionizing how computers work; some people were saying, 'Oh, Microsoft's share price has already risen significantly, let's go back to using typewriters.

Extract from Dragons Analysis moving forward for the YTL Group.

Multiple Re-rating Factors for YTL Group of Companies -
-------------------------------------------------------
Despite the latest strong quarterly results and recent stellar share price rally, there are still multiple re-rating factors for YTL group of companies in coming quarters:

A whopping 20 factors and more to come.

1-Continued strong earnings from PowerSeraya contributing >RM700 million net profit every quarter to YTL Power
2-Potential listing of PowerSeraya on SGX, which may potentially fetch a valuation of SGD 8.0 billion
3-Strong rebounds in Wessex earnings after interest rate hike cycle in the UK ends, high inflation starts to cool off and water tariff hike from 1st April 2024
4-Potential listing of Wessex Waters in in 2025-2026 which may fetch a valuation of over RM20 billion
5-Favourable outcome from the international arbitration on Jordan power venture which will enable it to fully realise PPA earnings and shareholders’ loan interest income of RM500-600 million a year
6-Maiden earnings contribution from the first phase of green data centre project with SEA Group from Q3-Q4 FY2024
7-Maiden earnings contribution from the first phase of AI data centre project in collaboration with Nvidia from mid 2024
8-Maiden earnings contribution from the digital bank venture from 2025
9-Potential turnaround of Yes 5G business as early as Q3 FY2024 and decent profit contribution of RM260 million and operating cashflows topping RM1.0 billion a year from 2024 after it secures another 1.0 million 5G subscribers
10-Financial close for the Waste-to-Energy (WTE) power plant project in Rawang
11-Potential securing some of the RE power export to Singapore from 2025-2026
12-Successful commissioning of the new 600MW hydrogen-ready CCGT by PowerSeraya and new profit contribution from this new unit of at least SGD200 million a year from 2028
13-Continued strong earnings and dividend payouts from MCement
14-Potential placement of MCement shares to strategic investors at over RM5.00 per share to improve public spread (YTL owns 78.6%) and to realise cash for YTL
15-Rolling out of mega infrastructure projects in Malaysia and new Indonesia capital city development in Nusantara to boost cement demand
16-Strong rebounds in YTL shopping malls and hotels business division
17-Strong dividend payouts from YTL Power (15-18 sen) and YTL (9.5 sen) from FY2024
18-Potential clinching of MRT3 package by YTL construction arm
19-Potential revival of KL-Singapore High Speed Rail (HSR) project
20-Potential monetisation of assets by YTL – injection of unlisted hotels and shopping malls into the REIT, monetisation of some landbank at Niseko Japan, potential listing of Japan Niseko assets on Japan stock exchange, potential disposal of peripheral assets and land parcels etc.

YTLP Investment Highlights- AmInvestment Bank

We maintain BUY on YTL Power International (YTLP) with an unchanged SOP-based fair value of RM5.10/share. Although we have raised YTLP Seraya’s earnings, our fair value for YTLP is unchanged on lower asset value for Wessex Water due to its losses. Our fair value implies FY25F PE of 13x - at parity to its 2-year average. We ascribe a neutral 3-star ESG rating to YTLP.

YTLP’s 1HFY24 results were 35% above our forecast and 14% above consensus. YTLP exceeded our expectations due to stronger-than-expected earnings from YTLP Seraya in Singapore. We have raised YTLP’s FY24E net profit by 35% to account for this.

YTLP Seraya has been recording a pre-tax profit of RM1bil per quarter in the past 3 quarters. We believe that YTLP Seraya is benefiting from the fall in gas costs and retail contracts, which have locked-in profit margins. YTLP also enjoys stronger contribution from YTLP Seraya as the SGD has been appreciating against MYR. According to Bloomberg, average exchange rate was S$1.00: RM3.45 in 1HFY24 vs. S$1.00: RM3.25 in 1HFY23.

Pre-tax profit of YTLP Seraya in Singapore surged to RM2.1bil in 1HFY24 from RM591.4mil in 1HFY23. Pre-tax profit margin rose to 27.3% in 1HFY24 from 8.6% in 1HFY23.

The water and sewerage division (Wessex Water) swung into a pre-tax loss of RM104.2mil in 1HFY24 in contrast to a pre-tax profit of RM9.3mil in 1HFY23. This was due to higher interest expenses from inflation-linked bonds. On a quarterly basis, pre-tax loss of the division widened to RM69.5mil in 2QFY24 from RM34.8mil in 1QFY24.

Pre-tax losses of the mobile broadband unit (mainly YES network) narrowed to RM137.5mil in 1HFY24 from RM155.9mil in 1HFY23 due to increased billings from various projects such as the construction of base stations.

YTLP is currently trading at an attractive FY25F PE of 10x, which is lower than its 2-year average of 13x.
............................................................

YTLP plus AI Data Centre in collaboration with NVIDIA, FY 25 PE should be at least 18x.



Source: AmInvest Research - 23 Feb 2024

YTLP is essentially an AI Technology Stock with its collaborative tie up with NVIDIA hence should be accorded with a PE of at least 18x.

YTL to advance AI development in Malaysia in collaboration with NVIDIA-Build supercomputing infra to accelerate progress to becoming an AI nation
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YTL Power International Bhd (YTL) announced , a collaboration with NVIDIA to build AI infrastructure that will bring the fastest supercomputers to Malaysia by the middle of 2024.

Tengku Zafrul said, “We welcome partnerships such as the one between YTL and NVIDIA, exactly the kind of strategic collaborations targeted by our New Industrial Master Plan 2030. By offering supercomputing cloud services and leveraging AI to power innovations, such partnerships enhance our economic complexity, paving the way for us to become a high technology and high-income nation while further positioning Malaysia as a top investment destination.”

YTL will deploy NVIDIA H100 Tensor Core GPUs, which power today’s most advanced AI data centres, and use NVIDIA AI Enterprise software to streamline production AI. NVIDIA AI Enterprise includes NVIDIA NeMo, an end-to-end, cloud-native framework for building, customising, and deploying generative AI models from anywhere.

NVIDIA H100 GPUs deliver industry-leading generative AI and can speed up large language models (LLMs) by an incredible 30X compared with the previous-generation GPUs.

The AI infrastructure will be hosted in the YTL Green Data Center Park in Kulai, Johor, a 500 MW facility developed by YTL that will be uniquely powered by an equivalent amount of on-site solar energy. YTL Communications Sdn Bhd, the telecommunications subsidiary of YTL, will own and manage the AI infrastructure that will provide AI computing services to the nation. YTL Communications owns and operates a national mobile network and was the first to offer 4G and 5G services in the country under its “Yes” brand.

The AI infrastructure will provide the foundation for scientific research and the development of solutions and applications that will accelerate Malaysia’s progress towards becoming an AI nation.

YTL will not only provide green, energy-efficient AI infrastructure to scientists, developers, and startups across the nation, it will also create AI-specific applications and services for its customers. YTL plans to use NVIDIA NeMo to customise and deploy a Malay language foundation model that will be sensitive to Malaysia’s multi-cultural heritage.

This will be the foundation for a digital economy powered by innovative solutions and applications built on our very own sovereign LLM,” said Yeoh Seok Hong, Managing Director of YTL Power International. “This collaboration with NVIDIA is poised to bring many benefits to the nation. Our green data centres and low energy solutions are an ideal fit to be used with their high-performance supercomputers. We are excited to begin this journey to bring our nation to the forefront of AI development.”

“Malaysia is embracing AI to enhance jobs, drive competitiveness, and supercharge innovation,” said Raymond Teh, Senior Vice President of the Asia-Pacific region at NVIDIA. “This collaboration will help deliver advanced AI computing infrastructure to enable Malaysia to build its own LLMs and power the country’s next wave of generative AI applications.”

The YTL Group believes that its experience and expertise in infrastructure development will enable the rapid rollout of AI data centres, with the first phase expected to be operational by mid-2024.

CRESENDO in a sweet spot to capitalise on DC Mania In Johor due to its massive land bank.

Johor is a rising star in the data center landscape, and CRESCENDO is well-positioned to capitalise on this growth. Coupled with the company's undervalued landholdings, partial recurring incomes, and decent dividend history.

These factors make CRESCENDO an attractive stock for investors seeking exposure to growing data center industry in Johor and RTS Link, the potential game-changer for property market in Johor Bahru.

Net assets per share of Rm 9.0 upon revaluation.

As majority of the lands have not been revalued for years, and if we assume a net gain of RM600m from the remaining 202 acres of industrial land in Nusa Cemerlang Industrial Park and a RM1b revaluation surplus for its remaining landbank and properties, this will bump up its net asset per share to RM9, versus its current share price of RM2.68 per share.

HLIB Price Target : RM 5.55 Maintain BUY

YTLP reported a strong core PATMI of RM850.8m for 2QFY24 (-6.5% QoQ, +1.8x YoY) and RM1.8bn for 1HFY24 (+2.7x YoY), above HLIB FY24 forecast (55.3%) and consensus (61.6%), mainly driven by the sustained strong contribution from SG PowerSeraya, contrary to consensus concerns. We expect another record high FY24 earnings, to be underpinned by continued strong PowerSeraya performance and maiden contribution from Attarat Power. Maintain BUY with a higher

TP: RM5.55 (from RM5.15) based on 10% discount to FD SOP: RM6.16.

Extract from Dragons Analysis moving forward for the YTL Group.

Multiple Re-rating Factors for YTL Group of Companies -
-------------------------------------------------------
Despite the latest strong quarterly results and recent stellar share price rally, there are still multiple re-rating factors for YTL group of companies in coming quarters:

A whopping 20 factors and more to come.

1-Continued strong earnings from PowerSeraya contributing >RM700 million net profit every quarter to YTL Power
2-Potential listing of PowerSeraya on SGX, which may potentially fetch a valuation of SGD 8.0 billion
3-Strong rebounds in Wessex earnings after interest rate hike cycle in the UK ends, high inflation starts to cool off and water tariff hike from 1st April 2024
4-Potential listing of Wessex Waters in in 2025-2026 which may fetch a valuation of over RM20 billion
5-Favourable outcome from the international arbitration on Jordan power venture which will enable it to fully realise PPA earnings and shareholders’ loan interest income of RM500-600 million a year
6-Maiden earnings contribution from the first phase of green data centre project with SEA Group from Q3-Q4 FY2024
7-Maiden earnings contribution from the first phase of AI data centre project in collaboration with Nvidia from mid 2024
8-Maiden earnings contribution from the digital bank venture from 2025
9-Potential turnaround of Yes 5G business as early as Q3 FY2024 and decent profit contribution of RM260 million and operating cashflows topping RM1.0 billion a year from 2024 after it secures another 1.0 million 5G subscribers
10-Financial close for the Waste-to-Energy (WTE) power plant project in Rawang
11-Potential securing some of the RE power export to Singapore from 2025-2026
12-Successful commissioning of the new 600MW hydrogen-ready CCGT by PowerSeraya and new profit contribution from this new unit of at least SGD200 million a year from 2028
13-Continued strong earnings and dividend payouts from MCement
14-Potential placement of MCement shares to strategic investors at over RM5.00 per share to improve public spread (YTL owns 78.6%) and to realise cash for YTL
15-Rolling out of mega infrastructure projects in Malaysia and new Indonesia capital city development in Nusantara to boost cement demand
16-Strong rebounds in YTL shopping malls and hotels business division
17-Strong dividend payouts from YTL Power (15-18 sen) and YTL (9.5 sen) from FY2024
18-Potential clinching of MRT3 package by YTL construction arm
19-Potential revival of KL-Singapore High Speed Rail (HSR) project
20-Potential monetisation of assets by YTL – injection of unlisted hotels and shopping malls into the REIT, monetisation of some landbank at Niseko Japan, potential listing of Japan Niseko assets on Japan stock exchange, potential disposal of peripheral assets and land parcels etc.

Extract from Dragons Analysis moving forward for the YTL Group.

Multiple Re-rating Factors for YTL Group of Companies -
-------------------------------------------------------
Despite the latest strong quarterly results and recent stellar share price rally, there are still multiple re-rating factors for YTL group of companies in coming quarters:

A whopping 20 factors , here you go.

1-Continued strong earnings from PowerSeraya contributing >RM700 million net profit every quarter to YTL Power
2-Potential listing of PowerSeraya on SGX, which may potentially fetch a valuation of SGD 8.0 billion
3-Strong rebounds in Wessex earnings after interest rate hike cycle in the UK ends, high inflation starts to cool off and water tariff hike from 1st April 2024
4-Potential listing of Wessex Waters in in 2025-2026 which may fetch a valuation of over RM20 billion
5-Favourable outcome from the international arbitration on Jordan power venture which will enable it to fully realise PPA earnings and shareholders’ loan interest income of RM500-600 million a year
6-Maiden earnings contribution from the first phase of green data centre project with SEA Group from Q3-Q4 FY2024
7-Maiden earnings contribution from the first phase of AI data centre project in collaboration with Nvidia from mid 2024
8-Maiden earnings contribution from the digital bank venture from 2025
9-Potential turnaround of Yes 5G business as early as Q3 FY2024 and decent profit contribution of RM260 million and operating cashflows topping RM1.0 billion a year from 2024 after it secures another 1.0 million 5G subscribers
10-Financial close for the Waste-to-Energy (WTE) power plant project in Rawang
11-Potential securing some of the RE power export to Singapore from 2025-2026
12-Successful commissioning of the new 600MW hydrogen-ready CCGT by PowerSeraya and new profit contribution from this new unit of at least SGD200 million a year from 2028
13-Continued strong earnings and dividend payouts from MCement
14-Potential placement of MCement shares to strategic investors at over RM5.00 per share to improve public spread (YTL owns 78.6%) and to realise cash for YTL
15-Rolling out of mega infrastructure projects in Malaysia and new Indonesia capital city development in Nusantara to boost cement demand
16-Strong rebounds in YTL shopping malls and hotels business division
17-Strong dividend payouts from YTL Power (15-18 sen) and YTL (9.5 sen) from FY2024
18-Potential clinching of MRT3 package by YTL construction arm
19-Potential revival of KL-Singapore High Speed Rail (HSR) project
20-Potential monetisation of assets by YTL – injection of unlisted hotels and shopping malls into the REIT, monetisation of some landbank at Niseko Japan, potential listing of Japan Niseko assets on Japan stock exchange, potential disposal of peripheral assets and land parcels etc.

Excellent write-up. Many thanks Dragon.

PAT of RM860.1 million. Excellent !

Yup Best Quarter since 2016. Has since diversified in a big way into RE- Solar energy.

Fully agree with you - the unadulterated and absolutely PureBull.

Most probably on the 28th of Feb.

Thanks Purebull for the analysis. Hope it's a super duper bull run.

Uzma unit accepts PETRONAS Carigali term contract

CORPORATE NEWS
Thursday, 15 Feb 2024


KUALA LUMPUR: Uzma Bhd's wholly-owned subsidiary Uzma Engineering Sdn Bhd has accepted an award of term contract from PETRONAS Carigali Sdn Bhd in respect of the portable water injection module (PWIM) for Sepat platform.

It also includes the decommissioning of PWIM and its associated, re-instatement of company facilities at Sepat A Well Head Platform (WHP) to the original condition and marine spread for demobilisation.

NVIDIA, YTLP's AI partner in building AI Factories valued at USD1.825 Trillion/RM8.6 Trillion

NEW YORK: Wall Street ended sharply higher on Wednesday, Nvidia displaced Alphabet as the US stock market's third most valuable company. Nvidia overtook Alphabet's market capitalisation ahead of the dominant AI chipmaker's quarterly results next week, now with a stock market value of US$1.825 trillion after its shares rose 2.5%.

Recurring revenue stream to ensure robust growth for KJTS

KAF Investment Bank Research expects KJTS Group Bhd’s three-year core net profit to grow on a compounded annual growth rate of 49.9%, with a substantial share of its earnings coming from recurrent revenue stream.

The company is also expected to benefit from the National Energy Transition Roadmap (NETR) and can capitalise on the rapid expansion of data centres in the country.

KJTS offers engineering, procurement, construction and commissioning (EPCC) projects and cooling energy management services (CEMS).

The company was recently listed on the ACE Market and derived about half of its revenue from large-scale cooling energy systems.

It is involved in cleaning services, which contributing 39.1% to revenue for the seven-month period of 2023 (7M23). Facilities management (FM), meanwhile, accounted for 10.7% of the revenue mix.

“KJTS’s crown jewel is its recurring revenue stream, which offers long-term earnings visibility.

“In financial year 2022, an impressive 84.8% of its revenue was from long-term contracts in the CEMS, cleaning and FM segments.

“We expect further expansion of KJTS’s recurring revenue base as it secures more projects, mainly EPCC jobs,” said KAF in a report initiating coverage on the stock with a “buy” call and 78 sen target price.

https://theedgemalaysia.com/node/700657

https://theedgemalaysia.com/node/700657

KJTS Group bags RM17m job from Thailand's Centara

theedgemalaysia.com
02 Feb 2024, 07:19 pm

KUALA LUMPUR (Feb 2): Building support services provider KJTS Group Bhd has bagged a RM16.77 million contract from Thailand's Central World Hotel Co Ltd (Centara) to undertake retrofitting works as well as provide operation and maintenance (O&M) services and supply of chilled water at Centara Grand Hotel at Central World in Bangkok for 15 years.

Our sifu dragon is such a knowledgeable person and also a gentleman.

Posted by dragon328 > 15 minutes ago | Report Abuse

Hyflux failed due to its inexperience in power generation as it branched out from its water treatment business. Its power plant in Singapore has since been bought over by PowerSeraya at a cost lower than the original building costs of Hyflux. That shows the brilliance of YTL Power management in scooping up quality assets at a bargain price.

This new CCGT plant of Hyflux has been contributing good profits to PowerSeraya since the completion of acquisition last year, and PowerSeraya is on track to recoup the investment cost in Hyflux asset within 3 years.

Thank you Calvin for highlighting this timely acquisition by YTL group.

Am investment Bank Raised TP to Rm 5.10


Ytl Power Int’l - Indirect Exposure to Nvidia
Author: AmInvest | Publish date: Tue, 30 Jan 2024, 9:48 AM


We have raised YTLP’s FY24E net profit by 11% to account for stronger retail margins in the Singapore power unit. We have also imputed the value of YTLP’s collaboration with Nvidia in our SOP valuation. We have not accounted for YTLP Seraya’s new 600MW hydrogen-ready CCGT power plant in Singapore in our SOP as it will only be ready by 31 December 2027.
We believe that there are 2 parts in YTLP’s data centre (DC) in Johor. First, the AI section, which would house the computing processing infrastructure powered by Nvidia H100 Tensor Core GPUs (graphic processing units) and the non-AI section, which would cater to other customers.

We ascribe a value of RM9.4bil to the AI data centre (Artificial Intelligence DC), which is the average of 2 valuation methods. For the non-AI DC, we attach a value of RM2.5bil based on a price of RM25mil/MW on 100MW. This is based on the net asset value of RM322.7mil for YTLP’s 12.5MW data centre in Singapore.

We value the AI DC between RM8.2bil (based on a price of RM235mil/MW on a capacity of 35MW) and RM10.6bil (based on the price of US$45,000/chip for 50,000 H100 chips). The assumption of 50,000 H100 chips implies a capacity of 35MW as a H100 chip uses 700W of power.

Our assumption of RM235mil/MW is based on a 50% discount to CoreWeave’s valuation of US$7bil on its 70MW data centres in US. CoreWeave specialises in cloud hosting, using various Nvidia GPUs such as H100s, A100s and A40s.
Although YTLP’s DC is expected to have a capacity of 500MW in total, we believe that it would come in stages. There is a shortage of Nvidia H100 chips currently. As for the non-AI section, we reckon that customers would come in phases.

For earnings, the 1st phase of 8MW at the non-AI DC is expected to come on-stream in 1Q2024. However, we do not expect rental income from this to be significant due to its small size. As part of the AI DC is envisaged to be completed by the end of 2024F, we believe that earnings would only be meaningful in FY26F. Some of the off takers or customers at the AI DC are anticipated to be Nvidia’s clients.

YTLP is currently trading at a FY25F PE of 12.5x.We maintain BUY on YTL Power International (YTLP) with a higher SOP-based fair value of RM5.10/share vs. RM2.70/share previously. Our revised fair value implies a FY25F PE of 16x. We ascribe a neutral 3-star ESG rating to YTLP.

YTLP IS HYDROGEN POWERED NOW

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


KUALA LUMPUR (Jan 29): YTL PowerSeraya Pte Ltd, a wholly owned subsidiary of YTL Power International Bhd, WON the right to build, own and operate a hydrogen-ready combined cycle gas turbine (CCGT) unit with a capacity of AT LEAST 600 Megawatts (MW) in Singapore.

This follows a request for proposal (RFP) called by the Energy Market Authority (EMA) of Singapore in July 2023. According to the EMA, YTL PowerSeraya’s proposal was selected out of four submissions for the RFP.

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

https://theedgemalaysia.com/node/698982

MQ Research sees YTL and YTL Power as potentials to be added to the MSCI Global Standard Index in the upcoming index rebalancing on 13 February.

What is MSCI Global index?
The MSCI ACWI is a stock index that tracks nearly 3,000 stocks in 47 developed and emerging market countries. Approximately $4.3 trillion in assets are benchmarked to the index as of June 30, 2023. 2. The MSCI ACWI index is used as a benchmark for global equity funds and as a guide to asset allocation.

MQ Research sees YTL and YTL Power as potentials to be added to the MSCI Global Standard Index in the upcoming index rebalancing on 13 February.

What is MSCI Global index?
The MSCI ACWI is a stock index that tracks nearly 3,000 stocks in 47 developed and emerging market countries. Approximately $4.3 trillion in assets are benchmarked to the index as of June 30, 2023. 2. The MSCI ACWI index is used as a benchmark for global equity funds and as a guide to asset allocation.

Agjl - HSS Engineering Bhd will be another big winner regardless of whoever wins the HSR project. The most prominent engineering company in Bursa. Just sharing TQ.

FOREIGN FUNDS accumulating this GEM

26-Jan-2024 Insider UBS GROUP AG (a substantial shareholder) acquired 5,865,600 shares on 22-Jan-2024.

Analysts believe that YTL Corp is the front-runner given that the group was the original HSR promoter in 2008-2009 and in 2018, it was appointed project delivery partner for HSR’s southern section.

Meanwhile YTL is said to be in talks to rope in CRRC Corp Ltd, their ERL partner/ the world’s largest rolling stock manufacturer, as its potential partner for the HSR project.

YTL's bid is formidable and a force to be reckoned with.

YTL Data Centre potential earnings finally factored in, hence the revised valuation of RM5.15.

That's more like it HLIB. The only IB with cojones to do this. The other IBs issued too many call warrants hence they have to zip up due to conflicting interest.

Extract - HLIB research report.

Maintain BUY, TP: RM5.15. We reiterate our BUY recommendation, with a higher TP of RM5.15 (from RM3.90), based on 10% discount to SOP: RM5.72 – largely after incorporating the valuation for YTLDC and higher valuation for Wessex Water. We believe that current valuation remains undemanding, while earnings and dividends may continue to surprise on the upside. We expect further upside as investors come to appreciate the value of its data centre, earnings recovery of Wessex Water and sustainability of PowerSeraya.

Source: Hong Leong Investment Bank Research - 24 Jan 2024

Yes a MGO is to be made. At what Price ?- have to wait for company announcement.

Private Placements Done in 2023/24

16-Jan-2024 17-Jan-2024 Private Placement 18,728,070 1.160 Additional Listing Detail
27-Jul-2023 28-Jul-2023 Private Placement 25,910,000 0.820 Additional Listing Detaill
21-Jun-2023 22-Jun-2023 Private Placement 12,562,500 0.800 Additional Listing Detail
26-Jan-2023 27-Jan-2023 Private Placement 28,469,600 0.650 Additional Listing

Foreign Funds & Director sapu at basement prices.

22-Jan-2024 Insider MORGAN STANLEY (a substantial shareholder) acquired 1,074,700 shares on 18-Jan-2024.
22-Jan-2024 Insider MITSUBISHI UFJ FINANCIAL GROUP, INC (a substantial shareholder) acquired 1,074,700 shares on 18-Jan-2024.
22-Jan-2024 Insider MR TOBIAS HJALMAR MANGELMANN (a company director) acquired 500,000 shares at 0.500 on 19-Jan-2024.

Net assets per share of Rm 9.0 upon revaluation.

As majority of the lands have not been revalued for years, and if we assume a net gain of RM600m from the remaining 202 acres of industrial land in Nusa Cemerlang Industrial Park and a RM1b revaluation surplus for its remaining landbank and properties, this will bump up its net asset per share to RM9, versus its current share price of below RM2.80 per share.

The market typically applies a discount on RNAV of property stocks, which could range from 50% to 80%, depending on management quality, dividend yield, earnings and growth potential.

During the Iskandar Malaysia rush 10 years ago, Crescendo's share price surged to RM3.80. I believe we have even more real and sustainable catalysts now to support further appreciation of land prices in Iskandar Malaysia, including the RTS and data centers.

Johor is a rising star in the data center landscape, and CRESCENDO is well-positioned to capitalise on this growth. Coupled with the company's undervalued landholdings, partial recurring incomes, and decent dividend history, do these factors make CRESCENDO an attractive stock for investors seeking exposure to growing data center industry in Johor and RTS Link, the potential game-changer for property market in Johor Bahru?

19-Jan-2024 Insider UBS GROUP AG (a substantial shareholder) acquired 6,596,200 shares on 16-Jan-2024.

19-Jan-2024 Insider DATO' TAN BOK KOON (a company director) acquired 600,000 shares at 0.235 on 19-Jan-2024

19-Jan-2024 Insider DATO' TAN BOK KOON (a company director) acquired 400,000 shares at 0.250 on 19-Jan-2024.

19-Jan-2024 Insider DATO' TAN BOK KOON (a company director) acquired 100,000 shares at 0.285 on 19-Jan-2024.

Extract

KKR and Bain Capital Invest Billions in Asia’s Growing Data Center Market

KKR and Bain Capital are making significant investments in data centers in Asia, capitalizing on the region’s increasing demand for computing and data storage driven by the surge in artificial intelligence (AI) and cloud services.

Similar to the trend in the United States, Asia is experiencing a growing need for data centers due to the expansion of cloud services by tech giants like Amazon and Google, the rising demand for capacity fueled by the recent wave of generative AI, and the growing population in the region.

Bloomberg reported that KKR envisions a potential equity investment of $1 billion in data center projects in the Asia-Pacific region in the coming years, with returns aligning with the mid-to-high teens, according to Projesh Banerjea, the firm’s director of infrastructure.

Look at the bright side- If LD remains today- tomorrow cannot LD - Limit up is a possibility.

This is a purely speculative ie gambling point of view.

HSS Engineers Bhd remains positive on its outlook for financial year 2024


Although the group did not provide any guidance on project wins for FY24 during its recent Malaysia Corporate Day, HSS expects 2024 to be a better year, according to CGS-CIMB Research.

It noted that in the first nine months of 2023, the group’s core net profit increased by 43% year-on-year, with project replenishment totalling RM300mil.

HSS has a tender book of RM442mil with historically a 50% success rate.

The research firm said the biggest setback for HSS was the further extension of the validity period for the Mass Rapid Transit 3 (MRT 3) civil packages.

“This is the fourth extension, with the period now ending in March 2024.

“Nevertheless, recent news from the Transport Minister that land acquisition will commence this year over a two-year timeline gave some assurance that awards could be imminent.

“HSS’ outstanding order book as at September 2023 was RM1.49bil, of which we estimate 60% to be its project management consultancy (PMC) contract for MRT 3,” said CGS-CIMB Research.

For its current PMC role in the MRT3 project, the research house added that it is still undergoing optioneering and land acquisition work and a strong pick-up in revenue recognition would be visible once the three large civil packages for MRT 3 are awarded.

“Once that happens, more engineers can be deployed and progress billings will pick up exponentially.”

However, the research house said the slack from MRT 3 delays could possibly be picked up by other projects, such as its lead design consultant role for Westports phase two, which is estimated to have a contract value of RM100mil to RM150mil.

It said the more immediate wins for the group could be from flood mitigation projects, the Penang Light Rapid Transit and Pan Borneo Sabah phase 1B.

A total of 33 high priority flood mitigation projects will be rolled out, costing about RM11.8bil under Budget 2024.

“Out of this, HSS has submitted engineering design bids for the smaller projects (worth RM500mil)

“For Pan Borneo Sabah phase 1B, the awards should happen soon. HSS was awarded a RM145mil PMC role for Pan Borneo Sabah phase 1A (15 packages) in April 2021.

“As phase 1B will comprise 19 packages worth RM15.7bil, we estimate the PMC role to be worth RM300mil,” added CGS-CIMB Research.

The company is currently working on overseas ventures in Japan to facilitate a private and public partnership project with the Japan Overseas Infrastructure Investment Corp for transport and urban development.

Accumulate before the catch up journey viz Papajacks begins.
TP Rm 0.88.

Nvidia rolls out new chips, claims leadership of AI PC race

Bloomberg
09 Jan 2024, 12:53 am

(Jan 9): Nvidia Corp, whose chip technology dominates in data centres used to create artificial intelligence (AI) software, announced new products to help the personal computer (pc) industry lure consumers with “AI PCs”.

The explosion in demand for that more expensive type of chip has pushed Nvidia’s market value past US$1 trillion, making it the most valuable company in the history of the semiconductor industry.

CEO Morning Brief
YTL Power Poised for More Gains After 200% Rally

edgeinvest

Publish date: Tue, 19 Dec 2023, 08:48 AM

(Dec 18): A blistering rally in YTL Power International Bhd this year has scope to continue as better performance from its overseas assets brightens the earnings outlook for the Malaysian power producer.

The share price has more than tripled in 2023, making it the biggest gainer among local companies with a market capitalsation of more than RM1 billion. Analysts are still calling for a buy in the stock, predicting that it could climb as much as 60% next year.

YTL Corp posts 14-fold increase in 1Q profit to RM521.7 mil

YTL Power could be eyeing controlling stake in Ranhill Utilities, say sources

By Sharen Kaur - November 17, 2023 @ 8:12am

KUALA LUMPUR: YTL Power International Bhd's acquisition of 18.87 per cent of Ranhill Utilities Bhd is right up Tan Sri (Sir) Francis Yeoh's alley, who has consistently shown a keen eye for regulated assets.

Industry observers said the acquisition is just the tip of the iceberg.

"Yeoh has several plans in the works. We believe he may increase YTL Power's stake in Ranhill Utilities because the stock is trading at a discount to its RM1.20 listing price.

"With a healthy cash pile of about RM9 billion, YTL Power may snap up a controlling block in Ranhill Utilities. However, this is subject to whether Ranhill Group's current major shareholder Tan Sri Hamdan Mohamad wishes to reduce his stake in the company," a source told Business Times.

Ranhill need a well deserved rest before resuming running up the Hill to meet his buddy Francis.

No worries, HSSEB is trending upwards - Day traders and short term gamblers are not interested in this gem. Praise the Lord.

YTLP is working on a GO at around 1.50.

A takeover by YTLP may be on the cards.

The mandatory general offer requirements are triggered in cases where despite the bidder and its PAC holding 33% or less of the target's voting shares, the Securities Commission has established that the bidder or PAC has, in fact, obtained control of the target (more than 33% of the target's voting shares).

CIMB -Reiterate Add and TP of RM1.21

We reiterate Add on HSS with a DCF-derived TP of RM1.21 (WACC: 9.4%, TG: 4.5%). At our TP, HSS will trade at 16.6x FY24F P/E, which is still below mean post-Covid-19. Downside risks are slower rollout of projects and single project risk from MRT 3 PMC.

We maintain our view that, while officially its tenderbook is at RM415m (historically 50% success rate.

There is a potential RM1.9bn worth of engineering and project management services (EPMS) projects in the pipeline locally over the next two years .