As I mentioned in the article, YTL gave away 3.0 sen dividend for FY2022, yielding 5.5% at current share price. This will make it a suitable long term investment for funds like EPF who gave out dividends of 5.2% to 6.1% in past 4 years.

If YTL lists up these assets at Niseko as a REIT in Japan, this Niseko REIT would be worth RM37 billion at 5% yield. That would make YTL stock a 6-bagger straightaway.

If YTL chooses to develop the Niseko land at sustainable pace and keep 20%-30% of the resort homes, total recurring income from the hotels, resorts and serviced suites there may top RM1.8 billion a year. Minus off Japan tax rate of 45%, net income still top RM1.0 billion a year or 9.0 sen per share. At 6% dividend yield, this dividend stream from Niseko would enable YTL share to trade up to RM1.50.

In 15-18 years time, this Niseko landbank would be worth close to USD5.0 billion if YTL keeps it without developing it. That would be almost RM23 billion or RM2.11 per share. Monetising it then would make YTL stock a 4-bagger.

The Niseko landbank of YTL is worth USD2.0 billion or RM9.3 billion at today's value, which is already larger than YTL Corp's market capitalisation of RM6.1 billion. This means we are getting all other assets like YTLPower, MCement, YTL Hosp REIT, Starhill Global REIT, Sentul landbank, construction arm for free.

@KINGV, I agree with you and I think most of YTLP's debts are at fixed rates, in the form of mid to long term bonds issued when interest rates were at decade low. Singapore interest rates have risen but are still at low level, furthermore PowerSeraya does not require to raise much fund in next few years for any expansion/capex but rather will generate very strong cashflows.
For projects in Malaysia, i.e. green data centre park, the capex spend will span over 8 to 10 years. For the 1st project now, YTLP has already got sufficient funds from the disposal of Electranet.

The only weak link will be at Wessex Waters which will need to raise more funds for capex spend to 2025. Hopefully it will be adequately compensated through higher water tariffs from next year.

It is definitely a good time to accumulate YTL which is at decades low. But stock market sentiment is very bad now, negatively affected by various external factors. We need to find a good time to accumulate more when downside is limited, I hope it can find a floor at 0.50-0.55 in next few months.

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But you are probably right that YTLPower share price may retest previous low given the current weak market sentiment. As long as its earnings outlook is still good and can maintain at least 5.0 sen dividend payout, I see this as an opportunity to accumulate more at even bargain prices, eg. at 0.63 it will yield 8%. Where else to find this high yield?

@kasinathan, no doubt the weak pound sterling will affect earnings contribution from Wessex Waters to YTLPower. The only "good" thing among all these negative developments is that Wessex's earnings is already expected to be weak in next few quarters given the high interest rates and high inflation environment there, so the weak pound effect on an already low earnings contribution will make the impact to YTLPower overall earnings not as bad.

With strong Singapore dollars, hopefully the increasingly strong earnings from PowerSeraya will be able to cover the weakening earnings from Wessex

Due to lower earnings in past few years, YTL Corp still gave away over RM300m of dividends every year, almost 100% of free cashflows (operating cashflows after debt service and necessary capex). This clearly shows that YTL management has endeavoured to distribute as much dividend to shareholders as possible at each company level, i.e. from YTL Power & Mcement & REITs to YTL Corp and from YTL Corp to all shareholders

@trader808, the total RM28bn of dividend payouts is the sum of dividends by all the listed entities of YTL group, i.e. YTL Corp, YTL Power, YTL REIT, SG REIT, YTL/MCement etc over the years.
In the good years of 2014-2017, total dividend payouts from YTL Corp alone already amounted to almost RM1.0 billion a year. (12 sen or RM1.289bn in FY2014, 10 sen or RM1.03bn in FY2015, 9.5 sen or RM1.03bn in FY2016, 5.0sen or RM600m in FY2017)

Things are looking up for YTL from its various new initiatives. Based on my earlier projections, YTL will register strong operating cashflows of over 10 sen per share as early as from FY2023 onwards, so it may be able to declare dividends of 5.0 sen or above from FY2023 onwards.

Back in 2014-2015, YTL was giving out dividends of 10 sen to 12 sen every year, and has distributed total dividends of RM28 billion over the years. As the Yeoh family is the largest shareholder in YTL Corp, so there is no reason to doubt that YTL will have all the intentions to declare high dividends as much as it can, as it will benefit the Yeoh family as well as all the minority shareholders.

No doubt that its share price has dropped from a peak of RM2.10 back in 2012-2014 to a low of 50 sen. That coincides with declining earnings in the past 10 years, the bulk of which was caused by unavoidable factors such as the expiring of Power Purchase Agreement for its Malaysian power stations despite numerous attempts to extend the contracts, the lack of large infrastructure projects in Malaysia that has caused soft demand for cement and COVID-19 pandemic that caused its hotel business to a standstill etc.
But we can see the YTL management has been trying hard to improve the company financials, for instance selling off non-core and peripheral assets such as some small land parcels at Genting for RM403 million, disposal of Dama Cement China for RM570 million and disposal of ELectranet Australia for RM3.066 billion, all at substantial profits (average at 275% premium to NTA), also the successful integration of YTL Cement into Malayan Cement, bagging the precious digital bank licence, starting of the green data centre park, and strong roll-out of 5G offerings etc.

With US Fed raising interest rates so aggressively, risky assets like bonds and stocks tumble across the globe. There is no good place to hide, hence many fund managers sell bonds and stocks in the rest of the world and move funds back to the US for the high interest rates and bond yields there, indirectly pushing up US dollars to decades high.

Where to park out money then? I would say a good place to park is in quality stocks that give high dividends with underlying business that is resilient and can withstand the onslaught of rising interest rates and strong USD.
YTL Corp will be one good candidate to consider - as its earnings outlook for next 2-3 years is still bright: YTL Power seeing strong earnings rebounds from PowerSeraya, potential turnaround in Yes business with strong takeups in its 5G offerings, maiden contribution from green data centre park and digital bank, strong operating cashflows from its cement division, strong rebounds in tourist footprints to its hotel business and shopping malls etc.

General market sentiment is weak with a lot of external uncertainties. Most companies and stocks are affected and down. If we look at share price performance of selected companies in past 3 months from 1st June 2022, YTL share price performance is not too bad:
Astro -20%
CIMB +2%
BPlant -37%
Genting -15%
Harta -60%
MRDIY -9%
Topglove -58%
MPI -10%
Inari -5%
YTL -12%
YTLPwr -7%

Correct, no need to monitor the stock market everyday. Invest in good stocks like YTL Power with a long term view then can sleep well, and just wait for the world class management to work hard and generate cashflows for dividend payouts to us twice a year.

With most stocks having declining earnings outlook, where will investors put money in? Can you still trade on speculative stocks? What story can drive up stocks anymore?
I would think that gradually people will find no other speculative stocks to goreng as stock market goes down the drain and trading volumes dry up. Then only dividend stocks with resilient business can find support from funds like EPF and KWAP.

News today says that there is a 98% chance for a global recession in 2023. Looking at the way things are going, I think very likely the US and Europe will go into a deep recession next year. Companies relying on export markets to the US and Europe will suffer the most, and tech companies will go down into a down cycle as consumer spending gets hit badly as US interest rates are hiked to probably 4.50%-5.00% by next year. Many companies with high debts will go bankrupt.

The only good place to hide is holding more cash to wait for good bargains next year and holding onto quality companies with resilient business models like YTL Power. With strong operating cashflows to support annual dividends of at least 5.0 sen per share, dividend yields may top 7% to give some buffer over rising interest rates / bond yields.

More worrying to me is the Russia-Ukraine war that may escalate further in coming months and the never-ending interest rate hikes in the US, such risks are hard to mitigate against at company level. Worst still is we do not know what to expect and what will happen

No doubt the rising interest rates, high inflation and depreciating pounds will negatively impact Wessex earnings contribution. I am hoping these impacts would be contained by water tariff adjustments from next year and rising contribution from Singapore at strong SGD

A total of RM541 million of provision was booked in by YTLPower in Q4FY2021 for re-measurement of deferred tax charges at Wessex Waters after the UK government announced a proposed tax rate hike from 19% to 25% from 1st April 2023. Now that the proposed tax rate hike has been cancelled, YTLPower should be able to write back the bulk if not all of this RM541m provision in its Q1FY2023 or latest Q2FY2023. Anyway this is non-cash item but will increase profits substantially.

@tonywong8, you are probably right for a tax writeback from Wessex after the tax rise was cancelled.

Thanks @xiaochen
This Yes unlimited 5G plan is competitive with TM unifi plan of RM129/month at 100 Mbps and RM168/mth at 300 Mbps. Though claimed to be 300Mbps, very often unifi users can only get 100-200 Mbps on average.

What is this wireless fibre 5G plan? How much GB and charge per month?

Be patient. YTL Corp should have a good chance to climb back to RM1.00 level in next 12 - 18 months

Superb results. 8 sen dividend. Full year dividend yield at 7.8%. Long term growth stock with high dividends.

https://klse.i3investor.com/web/blog/detail/dragon328/2022-08-29-story-h1628813084-YTL_Corp_4QFY2022_Continuous_Improvements_in_Utilities_Hospitality_and_

https://klse.i3investor.com/web/blog/detail/dragon328/2022-08-29-story-h1628813084-YTL_Corp_4QFY2022_Continuous_Improvements_in_Utilities_Hospitality_and_

https://klse.i3investor.com/web/blog/detail/dragon328/2022-08-29-story-h1628812225-YTL_Power_4QFY2022_Clear_signs_of_Earnings_Growth_in_Singapore

A brief update on YTL Power

https://klse.i3investor.com/web/blog/detail/dragon328/2022-08-29-story-h1628812225-YTL_Power_4QFY2022_Clear_signs_of_Earnings_Growth_in_Singapore

A brief update on YTLPower quarterly result and key business segments

No update on the Jordan project yet pending the arbitration case. Though I think the odds of YTLPower winning the case is very high, but ultimately it comes down to where the pay checks will be.
Due to years of under-investment in local power generation industry, Jordan is facing severe issues of power shortage and needs to rely on expensive imported fuel. The national utility Nepco is not in the best position to take on huge payments for new power generation, though the shale-oil fired power station would be very good for the country as it would use indigenous fuel which is abundant in the country and which cost will not fluctuate with international oil prices.

well said @xiaochen

Another superb set of quarterly results. Thumbs up for Padini management!

I am not too sure but think YTLPower has written off some development costs related to Tanjung Jati project, as mentioned by RHB Research too.

Tanjung Jati is a huge coal-fired power plant project to be developed under a 30-year Power Purchase Agreement with Indonesian PLN. Aside with environmental issues and lack of financing interests for high carbon projects, the current super high coal prices have made this project not feasible in relation to other renewable projects like geothermal and solar power in Indonesia.

Personally I do not think this project will go ahead.