@bullrun2025, I have been accumulating more IOIPG on weakness, but I think the technical chart looks not good, support seen at RM2.25-2.31.

Decision is yours whether to add more or when to add more.

@cwc1981, I think the cooperation model may be different for the HSR project from the earlier JB-Gemas double-track railway project which is purely a construction project.

The KL-Singapore HSR is a privately funded project where the project sponsors will be a private consortium such as YTL-China entity who will come out with the required funding to complete the construction and then recover the investment through a long term concession of operating the HSR. It will be more like the model used for the ERL project.

KL-Singapore HSR project will likely need China fundings and expertise, as Japanese consortium has pulled out of the race due to much higher costs. The case in study is Japanese's HSR project in Vietnam which has never taken off due to various reasons.

Yesterday selling on YTL Power and YTL was apparently due to the news of Singtel partnering TM in setting up data centre JV in Johor.

The first phase of 68MW data centre from the JV may come online in 2026. The JV bought a piece of land in Johor for RM98 psf, which is much higher than YTLPower's land cost of RM6 psf. The JV land is small so it is only enough for setting up data centre buildings and no solar power farm. The JV data centre will need to rely on grid import power supply from Tenaga which will be double the cost of YTL Power's own solar power supply.

Furthermore, Johor is short in water supply now due to a surge of demand from new data centres and industrial activities in the state. I doubt this TM-Singtel JV could secure sufficient water supply from Ranhill at competitive rates.

For YTL Power, it has already secured 48MW of colocation data centre and close to 200MW of AI data centres, which will keep it busy until 2025. My earlier earnings projection was based on such secured jobs.

YTL Power still holds great advantages in securing more data centre jobs:
1) YTLP owns the only water supply company Ranhill in Johor, which will ensure it will get prioritised water supply to its data centres

2) YTLP has got sufficient land at Kulai park to install up to 500MW of solar power which will reduce the power supply costs, and give green credentials to the new data centres to international clients

3) YTLP has access to Nvidia latest GPUs faster than any other company in the region including Singtel, which is the primary driver to attract big clouds customers

Yesterday selling on YTL Power was apparently due to the news of Singtel partnering TM in setting up data centre JV in Johor.

The first phase of 68MW data centre from the JV may come online in 2026. The JV bought a piece of land in Johor for RM98 psf, which is much higher than YTLPower's land cost of RM6 psf. The JV land is small so it is only enough for setting up data centre buildings and no solar power farm. The JV data centre will need to rely on grid import power supply from Tenaga which will be double the cost of YTL Power's own solar power supply.

Furthermore, Johor is short in water supply now due to a surge of demand from new data centres and industrial activities in the state. I doubt this TM-Singtel JV could secure sufficient water supply from Ranhill at competitive rates.

For YTL Power, it has already secured 48MW of colocation data centre and close to 200MW of AI data centres, which will keep it busy until 2025. My earlier earnings projection was based on such secured jobs.

YTL Power still holds great advantages in securing more data centre jobs:
1) YTLP owns the only water supply company Ranhill in Johor, which will ensure it will get prioritised water supply to its data centres

2) YTLP has got sufficient land at Kulai park to install up to 500MW of solar power which will reduce the power supply costs, and give green credentials to the new data centres to international clients

3) YTLP has access to Nvidia latest GPUs faster than any other company in the region including Singtel, which is the primary driver to attract big clouds customers

@Investorrr, yes most likely YTL will be the subcontractor to a China main contractor for the HSR project, just like the model it used to build the JB-Gemas double-track railway where YTL has got over 80% of the total construction work subcontracted from a China main contractor.

YTL has the construction expertise to build the railway and HSR station, and has ample supply of building materials like cement and concrete. YTL also has the balance sheet to take up big construction jobs. Of course the train rolling stock and signalling systems will need to be imported from China/Japan/Germany.

@cwc1981, I don't expect YTL to bid for Hong Leong's cement business, as MCement already commands a dominant market share of close to 70% of Peninsular's cement market.

Of course, if it were a cheap sale YTL would look at it, but I don't expect Hong Leong to sell cheap.

Yes @cstanmyinvest, checks on the ground indicate to me that retails margin is very good for PowerSeraya in March and April 2024.

@cwc1981, I do not have any insight into YTL's HSR proposal but just looking at the past records, I think YTL will be able to make the project feasible because of a few factors:

1) YTL has a long record of good construction work delivery always on time or ahead of schedule, hence saving a lot of costs (manpower, machine hire, interest during construction etc.)

2) YTL has strong construction expertise as several of the Yeoh siblings and sons are civil engineers by discipline, hence can come out with innovative and cost effective construction methods to reduce construction time and costs

3) YTL always comes out with innovative financing methods to fund the construction projects, often based on its strong balance sheet and good track records YTL can get lower interest rates from bank borrowings or issued bonds

4) By having the above advantages, YTL will be able to bring down the construction costs to the minimum and hence require less expensive ticket prices to break even. Furthermore, YTL is in for the long haul and with its strong balance sheet, YTL will be able to withstand small losses in initial years of operations, then recover from higher ticket prices and ridership in later years. A good example is its ERL project, YTL built it at a world-beating price, hence could offer low-priced ticket of RM35 one way between KL Sentral and KLIA. Though ERL suffered small losses in the initial years of operation, but it survived through years of operation at the same low ticket price of RM35 until the government granted an adjustment in the ticket price. Now the project is giving good profits to YTL.

5) YTL has demonstrated its ability to operate world class utility facilities at efficient way, as evidenced from the improved performance of PowerSeraya and Wessex Waters after the take-over by YTL. The way YTL invested in and has managed PowerSeraya has earned confidence from the Singapore government. Furthermore YTL has various investments in Singapore and Malaysia with many business partners and corporate associates, making it easy for YTL to cross sell HSR tickets with its other services in Singapore.

Genting Singapore will be the key earnings driver to Genting Bhd, as evidenced from the latest quarterly result. It will only get better as more tourists flock into Singapore.

It is grossly undervalued as annualised net profit of S$1.0 billion makes it valued at an undemanding forward PER of just 10.8x. EBITDA of S$369m in Q1 FY2024 exceeds earlier estimates and GS is on track to achieve EBITDA of S$1.4 billion for FY2024. At S$0.88, GS is trading at just 5.2x, almost half of its Macau peers.

I also like such a slow and steady uptrend for YTLPower to scale new highs in coming weeks heading to Q4 result announcement in Aug 2024.

It was good for the temporary pullback in late May to flush out weak holders and short term traders, and for serious investors and long term funds like EPF and foreign equity funds to buy in for long term investment.

As I suggested some 2 years ago, a US listing of Genting's American assets should be a sensible move by Genting to unlock its deep value of the various resorts and casinos in the US. Genting CEO just confirmed such interest.

Unfortunately, the US Fed is still not prepared to start lowering interest rates, with the odds of 1st cut in September 2024 reduced to 55% only from 70% one month ago. But US Fed's dot plan did indicate at least one rate cut in 2024.

I believe Genting is waiting for the right time to do the US listing, it is just a matter of time. When it pulls the trigger, it will be a major catalyst to Genting's financials and share price.

Thanks @cgtan2020 for the news link above. I extract out the relevant part as below:


Rajiv Jain, chief investment officer at global asset manager GQG Partners, owns Malaysia's YTL Power International (YTLP.Malaysia). The company stands to benefit from a host of reforms in Malaysia of its power sector as it sees a data center boom and the country tries to become a regional hub, exporting power to Singapore and other parts of southeast Asia.

At 12.6 times next year's earnings, valuations in Malaysia are still relatively attractive. "No one is paying attention to the sleepy market, " Jain says.

@limch, that's why I think YTL will get the HSR project as many other parties do not know how to make it profitable, but YTL does.

@bullrun2025, based on Hong Leong report, the sum-of-parts valuation for IOIPG is as high as RM6.00 per share. There may be upside to this SOP if its completed IOI Central Boulevard in Singapore gets revalued next year when it secures more tenants.

Hong Leong attached a 45% holding company discount and gave a target price of RM3.30 to IOIPG.

To me, such a high holding company discount should be reduced progressively when IOIPG secures more tenants for IOI Central Boulevard, especially if they manage to inject it into a new REIT in Singapore at a valuation of over S$6.0 billion.

I am looking at a 20% discount to the SOP valuation, or a fair value of RM5.00 by 2025.

IOIPG is doing net profit of RM800m a year now, and should be able to achieve a net profit of RM1.1b in 2025 when half of the tenants secured for IOI Central Boulevard starts to contribute and over RM1.37b or EPS of 25 sen by 2026.

So I attach a PER of 20x to 2026 EPS of 25 sen to get a fair value of RM5.00.

Crescendo announced to sell another piece of land in Pulai at about RM130 psf to a data centre developer. Hot, hot, it is getting hotter on Johor land.

IOIPG had under-estimated the huge potential of the Johor land earlier this year when it disposed off some 400 over acres of its land in Pulai to Eco World at just RM12 psf.

Eco World has since re-sold part of this land to a data centre developer at RM75 psf, making a cool gain of 600% in just 6 months.

I believe IOIPG should have noticed the huge potential of the land in Pulai, and may choose to dispose of part of the remaining 5,000+ acres of land in smaller parcels at prices near RM100 psf, given that Crescendo has disposed off 5 small parcels of land there in past few months at an average price of RM120 psf.

Progressive sale of parcels of land up to half of its landbank in Pulai, or 2,500 acres at average price of say RM100 psf would net a cool RM10.9 billion to IOIPG, or add a value of almost RM2.00 per share to IOIPG.

UEMS just announced to dispose of some land in Iskandar at RM115 psf. Johor land is so hot now. Big landbank owners such as IOIPG are sitting on gold mine, may be slowly digging out (disposing of) some for cash in the ongoing gold rush (data centre craze).

@cgtan2020, it is just a small amount of shares changed hands between the Yeoh siblings, I won't read too much into it.

Property companies which have landbank in Johor are seeing their shares being chased up today, after Eco World announced yesterday to dispose of some 124 acres of land in Pulai to Microsoft Payments for RM405m or RM75 psf.

Along with the recent disposal of another piece of land in Pulai by AME at RM138 psf, very obviously the land prices in JB around Pulai-Kulai area have appreciated by 200% to 300% in the past few months. This serves as a good reference for property companies to revalue their landbank assets in Johor.

IOIPG has about 5,488 acreas of land in Pulai, if revalued to latest transaction price of RM75 psf, it is worth some RM18 billion, and if revalued to the earlier transaction price of RM138 psf, it is worth RM33 billion. The holding cost of this land is very low for IOIPG, so any revaluation will give rise to substantial gain of RM17-32 billion or up to RM6.00 per share.

I think IOIPG may not need all of such large landbank in Pulai for property development, and may choose to dispose of part of it when the price is right. It may choose to dispose of say 300-500 acres every year and get back cash of RM1.3b to RM2.2 billion a year for the next few years. Total land disposal gains may amount to a whopping RM26 billion or RM4.80 per share in the next 10 years or so, still leaving over 1,000 acres of prime land for property development.

Eco World yesterday announced to sell a piece of land of 124 acres in Pulai to Microsoft Payments for RM403m or at RM75 psf.

KSL has around 578 acres of land around the area in Pulai, if the land is revalued to RM75 psf, it would be worth RM1.93 billion or close to KSL's entire market cap of RM2.1 billion.

@Vicky, it is good to have some sort of control over new data centre builds that everybody is trying to jump into now, especially those who do not have any experience in this field and have not locked in sufficient power and water supply.

Lately some corporates are trying to jump into the data centre bandwagon just to get some limelight for their company stock, eg. Mah Sing who announced to form a JV to enter the data centre business. Just like few years back Mah Sing also jumped into glove manufacturing during the Covid glove mania, now it is trying to wind down the business and jump into another new field.

Data centres need lots of power and water supply, these companies who have no expertise in this field will suffer from inability to secure sufficient power supply or water supply, or suffer from below par returns due to highly priced power and water supply that they struggle to secure.

On the other hand, YTL Power has already secured sufficient land to build 500MW of solar power to power the data centres at its Kulai park, and I expect them to start installing the solar power once the first phase of AI data centre is about to start operations in early 2025, then the company will reap the max rewards from the relatively cheap power supply (solar power has a levelised tariff of below 25 sen/kWh compared to grid supply from Tenaga at over 50 sen/kWh) and secured supply when battery storage is installed at the site.

Not many employees will sell their ESOS now, as they know better than anyone here the good prospects of the company, especially those who are involved in the operations of PowerSeraya, Wessex, Jordan and AI data centre divisions.

@Unfair, YTLP's weak Q3 FY2024 result has been much discussed and talked about here and even exaggerated by local media and some local analyst. You are just being unfair here.

As I said before, Q3 was just a temporary blip as the drop in PowerSeraya earnings was not compensated by a rebound in Wessex and Yes' earnings in time. Most analysts have agreed on this and upgraded the target price for YTL Power after Q3 result, as the prospects of AI data centre are bright enough to drive the next phase of earnings growth for YTLP.

We shall see this in the upcoming Q4 FY2024.

Good closing!

Slow and steady up

No need to make a big fuss on UBS ceasing to be a substantial shareholder of YTL. It still holds 4%+ stakes in YTL and 3.5% in YTL Power. We don't know its next move.

It may start adding back YTL once HSR news gains traction or adding shares in YTL Power or MCement.

You simply cannot imply much from just one event. Similarly those traders who over-reacted to one quarter of weak results from YTL Power may regret now as share price shoots past RM5.00 again and may scale new highs months later. Long term investors need not worry too much about such volatility.

UBS had a direct stake of 0.44% in YTL Power and another 3.12% via Credit Suisse as of 30 June 2023.

UBS may adjust its investment portfolio after it fully took over Credit Suisse, no one knows whether it will pare down further stakes in YTL or increase stakes in YTL Power.

It does not matter, now local funds are big buyers of both YTL and YTL Power shares. Plus company share buyback and buying from Yeoh Tiong Lay & Sons Sdn Bhd, it should have strong support to share price.

@cwc1982, it shows that EPF has finally seen the deep values in YTL. I expect more buying from EPF in coming weeks, to gradually increase its holdings back to 5% level.

Yeoh Tiong Lay & Sons Sdn. Bhd. added 3.0 million shares in YTL Power on 31 May 2024, pushing its stakes in YTLP to around 65%.

That shows the confidence of the Yeoh family in the outlook of YTL Power.

Furthermore, YTL Power has got approval for up to 10% share buyback which will provide support to the company share price.

Based on records from CGS-CIMB, EPF started buying back YTL Corp shares by acquiring 1.2 million shares on 31 May 2024. That marked the first purchase by EPF after it pared down its stakes below 5.0% last year.

On the other hand, Yeoh Tiong Lay & Sons Sdn Bhd added shares in YTL and YTL Power yesterday.

@cwc1981, the latest target price for YTL Corp is as follows:

CGS - maintain at RM3.88
Hong Leong - had a fair value of RM3.33 on 25 April 24 but I have not seen any update after Q3

That's all I have.

@Jeffchang, I have the latest Hong Leong report that upgrades YTL Power to RM7.45.

Anyone who wants this report can pm me.

@jeffchan1901, thank you for your confidence in my analysis and in this stock.

The intention of my sharing in the last article last Thursday is to give a full picture of what is to come, from the various subsidiaries of YTL Power, and how the earnings projection may look like for the next few years from my perspective.

You will need to assess the possibility of YTL Power achieving the earnings as projected in my article. But I am confident those numbers will be achieved, after studying most of the recent analysts' reports, some of them were issued after meeting the top management of YTL Power.

I am glad to see that many of the analysts are convinced with the bright earnings outlook of YTL Power and have given a 12-month target price of over RM6.00. Only one or two is still skeptical of the potential of YTLP's AI data centre business.

These analysts have more resources than us retailers and often have access to information faster than us. You should pick those analysts who are non-biased and professional such as Hong Leong, Macquarie, CIMB, CLSA & Ambank. Maybank is biased and in some way conflicted as it is advising YTL Power on the MTO of Ranhill.

You should try to study as many reports as possible and compare with my notes, then come out with own assessment to see if YTL Power at current stage still suits your investment needs.

I always advocate for long term investment to reap the maximum returns. Some real examples recently to illustrate my point:

-Had we taken profit at RM1.30 level (when Singapore introduced TPA last July), we would have missed the subsequent powerful rally to RM2.00
- Had we taken profit at RM2.24 when it hit twice and retreated to RM1.88, we would have again missed out on the subsequent rally to RM2.54 by end of 2023
- Had we taken off profit at RM3.50 when YTLP rallied up by 40% from RM2.54 in 4 days in early Jan 2024, we would have missed out the subsequent push to RM4.20
- Had we taken off profit at RM4.20 level but didn't buy back when it retreated to RM3.60-3.80 level, we would have missed out on the recent rally to RM5.46.

Now I presume many have taken some profit at good prices above RM5.00 to 5.40, you need to assess the possibility of YTL Power scaling new highs again in near future. You will never know what sort of good news may come and when it will be announced.

Based on my earnings projection and if I apply a PER of 12x and 15x, I expect YTL Power share to trade up to:

2024 - EPS of 39 sen x 12-15 = RM4.68 - RM5.86
2025 - EPS of 46 sen x 12-15 = RM5.52 - RM6.90
2026 - EPS of 60 sen x 12-15 = RM7.20 - RM9.00
2027 - EPS of 66 sen x 12-15 = RM7.92 - RM9.90
2028 - EPS of 80 sen x 12-15 = RM9.60 - RM12.00
2032 - EPS of 92 sen x 12-15 = RM11.04 - RM13.80

By 2028, YTLP's earnings will match or surpass Tenaga's numbers, and if the market decides to give a higher PER like 20x to 25x given to Tenaga, then you know how high YTLP share may go.

The share price in the long run will always follow the earnings trend, as earnings increase over the year, the share price will follow.

You can see how the share price of Nvidia has moved in tandem with its earnings. Before Nvidia announced Q1 FY2025 in early May 2024, its share price was hovering around US$900. Just after Nvidia announced the strong Q1 that beat expectations, the share price has since jumped up 26% to as much as US$1,140 per share.

YTL Power share was punished immediately after it announced Q3 FY2024 result that was weaker than Q2 FY24 but stronger than Q3 FY2023. What I can tell you is that Q3 FY2024 was just a temporary setback, given the weakness in PowerSeraya earnings (due to gradual roll over of high margin retails contracts and slightly weaker power demand) was not covered by a rebound in Wessex' and Yes 5G's earnings in time.

Looking forward, I see Q4 FY2024 to be stronger than Q3 FY24 mainly due to expected earnings rebound from Wessex after its 12% water tariff hike since 1st April 2024 and maiden contribution from the 1st phase data centre with SEA Ltd.

Looking further ahead, I see much stronger earnings growth in FY2025 and FY2026 as the AI data centre starts to contribute earnings from early 2025.

I am not sure about you, but I see compelling reasons to hold onto my YTL Power shares to 2028 when I am confident of getting another 100% gain in share price, or to 2032 when I expect to get another 80%-100% gain.

@Jaden993, sent you the docs in i3 messenger

Genm registered improved performance from all three regions: Malaysia, UK and US with adjusted EBITDA totalling RM810 million.

It was impacted by a non-core forex loss of RM130m in this quarter, hopefully non recurring.

US division (Resorts World New York City and Bahamas) registered improved EBITDA of RM153 million in Q1 FY2024, annualised to RM612 million.

Genm had total USD loan of about RM8.0 billion as of 31 Mar 2024. Assuming average interest rate of 4.5%, I estimate annual interest expenses to be RM360 million. Cash tax expense would be minimal given that the US divisions were at pretax loss after depreciation charge. So operating cashflows for US division would be about RM612m - RM360m = RM252 million a year.

This reaffirms my earlier view that RWNYC was cashflow positive to the tune of US$50m a year.

True that Genm had a higher loss from share of results from associates (mainly from US Empire Resorts), the loss was only RM5.8m higher for a much larger equity stake of 89.6% from 76.3% earlier. If we add back non-cash depreciation charge, EMpire Resorts was indeed EBITDA positive and most probably cashflow positive too. This also strengthens my earlier claim that the latest injection of US$100m by Genm into Empire Resorts would not be a bad thing. That would have helped Empire Resorts to save interest expenses and to break even sooner.

Though Genm had a higher loss from

IOIPG registered an excellent set of results for Q3 FY2024 with net profit of RM220 million, almost double of last year corresponding period.

Though this quarterly result was boosted by a land sale in Johor, but that was considered part and parcel of property development for IOIPG who still has some 5,448 acres of land in Johor.

Can't find you in i3 messenger, Edison Cheah.

you try to pm me then I will send you the pdf file

Key division performance is as expected with the bulk of the earnings contributed by Genting Singapore, and slightly improved EBITDA from Genm but slightly lower EBITDA from UK and US divisions compared to Q4 FY2023.

The key swing factors in Q1 FY2024 compared to Q4 FY2023 are:
- absence of a disposal loss that improved PBT by RM69.9m in Q1
- lower impairment losses by RM51m
- the last item called Others that swang from a loss of RM95m in Q4 FY23 to a gain of RM138m in Q1 FY24

These 3 items contributed additional PBT of RM350 million in Q1 FY2024 compared to Q4 FY23. But a higher loss by RM55m in Investments & Others (due to provision in Genm for forex loss) reduces this impact to RM300m pretax.

Overall performance is commendable and this shall set the tone for following quarters.

If this momentum continues, Genting may well register total EPS of 60 sen for FY2024.

How much shall the share price be? I would argue for a PER of 15x or RM9.00.

@Abcdefg123456789, I can pm you the pdf file. You pm me first if you want.

@Goldberg, thanks for the sharing of the article above.

That summarises the strength of YTL Power in the development of AI data centres in the region - a captive 500MW solar power supply, and now a majority stake in the sole water supply company in Johor to ensure adequate and fast connection of water supply to the new data centres.

Thanks Goldberg for the updates.

It is indeed a strategic move by YTL Power to strengthen its hold onto Ranhill, as it looks to expand on its data centre business in Kulai.

After the premature selling last few days after one weak quarterly result, more short term traders have been flushed out and I hope YTLP shares can have a steady rise in coming weeks to new highs.

Good deal for YTLPower to buy over Hamdan's stakes in Ranhill at RM0.995.

This will solidify YTLP's shareholdings in this Johor water company to above 50%.

Look forward to big improvements in Ranhill financials after the take over. Another earnings accretive deal for YTLP, which will ensure good profits from the water company for generations to come.

The next catalysts will be:
- sustained strong profits from PowerSeraya in Q4 FY2024
- turnaround of Wessex Waters in Q4 FY2024
- secure more big clouds customers for its AI data centres in next few quarters
- launching of digital bank
- turn around of Yes 5G in 2025
- secure more customers for its co-location data centres after SEA Ltd or SEA to take up more space after the initial 48MW
- financial close for KL WTE project
- meaningful contribution from UK Brabazon property project from FY2025
- financial close for PowerSeraya new 600MW hydrogen-ready CCGT
- other earnings-accretive M&A activities
- corporate exercises like new IPO listing to unlock value of assets

@observatory, I do not have a spreadsheet for AI data centre project, as I only aimed to calculate the potential net profit contribution to YTL Power.

I assumed a product cycle of 3 years, after which YTLP would re-invest in the newest technology chips and lease out for another 3 years. This is similar to what Macquarie analyst has assumed.

@emsvsi, the equity IRR would be very high as typically AI data centre developers look to get back all returns within 3 years, as the product life of GPUs is short.

I didn't calculate the IRR but you may refer to CLSA or Macquarie reports for reference

@observatory, I had also struggled for a while on the capex figure until I read CLSA report on YTL Power. Apparently, not all the power requirement for AI data centre is for powering the GPUs, CLSA report said about 67% was for GPUs and the rest for cooling & others. In my calculations, I have assumed 67.5% of power for GPUs.

In your example above, for a 100MW AI data centre, the required number of H100 GPUs may be 100,000x67%/0.700 = 95,714

Assuming US$30k per H100 GPU, the required capex would be 95,714 x US$30k = US$2.9 billion close to the figure of RHB's US$3.0b.

@Edison Cheah, I expect PowerSeraya earnings for Q4 FY2024 to be similar to the RM700m achieved in Q3 FY2024. I expect the same level of quarterly profit to continue into 2026 then drop to S$600 million in FY2027 & FY2028 or quarterly net profit of S$150m or RM525m.

@cgtan2020, CGS's latest tp for YTL Power has been raised to RM5.50

CIMB raised tp for YTLP from RM4.47 to RM6.22

I just received RHB latest report on YTL Power where RHB raised target price from RM4.69 to RM6.68.

In valuation AI data centre, RHB analyst assumed 15x EV/EBITDA, total 60MW of AI data centre only, 14% project IRR, 60% stake and USD3 billion capex to come out with a valuation of RM18.5 billion.

Had he assumed a total of 200MW, the valuation would balloon to RM61.7 billion !

You can see my assumptions are more conservative than some of the analysts, eg. I assume a leasing rate of US$2.50/hour per GPU compared to US$3.42/hr per GPU assumed by Macquarie and US$3.00/hr per GPU assumed by CLSA.

I have assumed a total of 200MW of AI data centres to be commissioned by mid 2027, while Macquarie has assumed a total of 300MW while CLSA has assumed a total of 150MW AI data centres.

DCF valuation is a good method to value the AI data centre business but one needs to have sufficient data for a DCF valuation. The AI data centre is a relatively new business, and hence analysts struggle to come out with a proper valuation using traditional method like DCF or PER.

Hong Leong used a PER of 25x on projected FY26 earnings of AI data centres.
CLSA used 3x multiples of sales, or implied PER of 29x with reference to CoreWeave valuation.

Macquarie used DCF valuation for YTLP's AI data centre, by making many assumptions, including 100MW AI data centre in 2026, another 100MW in 2029 and another 100MW in 2032, US$3.42/Hour/GPU of leasing rate etc. The DCF valuation comes to RM50.5 billion for this total 300MW AI data centres, and RM30.3 billion for YTLP's 60% stakes. Again some would argue too high, but it all depends on assumptions made.

After studying the valuation and revenue calculations made by CLSA, Ambank and Macquarie, I decided to make my own calculations of potential revenue and earnings to be contributed by AI data centres to YTLP. You may challenge my calculations and assumptions made, but those are my assumptions based on indications from the company as well as from various analysts.