China is very cunning, surely that want high return and deal maybe go thru unless Msia give attractive term like Bossku. Plus, china domestic economy is poor n having trade war with USA. Personally i do not put high hope on China.
CGS also has a 'hold' recommendation for YTL Corp Bhd (KL:YTL), with a TP of RM3.88, and a 'hold' on its associate YTL Power International Bhd (KL:YTLPOWR) (TP: RM5.50), which has a 500MW green data centre park in Johor that will come on stream in 2024, and which has partnered Nvidia Corp.
Maybe the interest from both local & foreign investors have waned after the latest dividend declared of 4c as against the 15c TS announced in a biz forum in Singapore last year. Any possibility...??!
There are several factors though, the market has risen a lot anyways, needa a correction. Moreover, there is ongoing EURO 2024. anddddddddddd the CPI is 2% which is kind of bad
YTL is still above MA 200, fundamental side is not affected. It's still considered as a uptrend stock. There's a potential support at 3.20, if it goes thru then around 2.6 or 2.7 (IIRC) have the strongest support.
Local research houses are busy upgrading construction stocks lately, raising valuation for big construction companies to PER of 20x.
YTL Corp has a projected EPS of 20 sen for FY2024. Using the same 20x PER, YTL should be trading to RM4.00. CGS has a fair value of RM3.88 for YTL, which is not too far from my figure.
YTL PER is already at 18x..... and if 20x is the target then there is little upside im thinking. The delay in HSR status is not helping the price, with only upside being ytlp 55% equity consolidation. YTL will have to compete with Sunway, Suncon, Gamuda and IJM..... and my take is that YTL is lagging on contract wins of this list....
YTL current PER is at 17x, there is still a good upside to my first target price of RM4.00. And this PER is based on current earnings base without HSR project.
I am confident that YTL will get a slice of the HSR project, likely to be the southern portion again as awarded before. The construction contract sum for this portion will be almost RM50-60 billion. Furthermore, whoever wins the HSR project, there will be huge demand boost to cement industry of which YTL's 75%-owned MCement has a majority share.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
redhotpepper
729 posts
Posted by redhotpepper > 1 week ago | Report Abuse
Shortlived, seems more down than up.