So Engle , what should we buy after selling YTL ?? Probably sell YTL and buy more of YTL power , we don’t need HSR , all we need is to sign up a few global giants for using the Data Centre in Kulai !!!! Data is the new Gold in this Era .
I believe many investors buy YTL not so much for HSR, is mainly for contruction and property upcycle,building material especially cement & concrete, utilities, power play,data centre,and the important one is data centre for AI and supercomputer with Nvidia.HSR is just a supplement as is needs time to realise it.
I believe all three shortlisted candidates Bjland+MRCB+IJM, China construction, YTL are all would be awarded, as landscaping like earth work need IJM MRCB,railway alignment and concrete need YTL,technology and system plus funding and bus containers needs China
There is the distinct possibilities of the company appointed as a single sourcing request for proposal for the HSR rail link. Similar to what the MOF -Penang state announced the LRT project award
Yes. One thing is real. Cost of goods spike up hard to come down. The so called government re directed targeted on petrol subsidises would push up many other cost of living items. prices would increases exponentially if my transport costs increases, my freight charges increases, electricity & water rates is higher. Rental rate would mark up. Blame it on the government
Statistics shows that local institutions have been net buyers of Bursa stocks in past 5 weeks since 1 March 2024. I suspect that some of these local funds have been accumulating YTL and YTL Power shares as they missed out both last year.
As of 30 June 2023, EPF still had at least 3.02% stakes in YTL Power and 2.58% stakes in YTL Corp. I suspect they have more now but still lower than 5%.
Both YTL and YTL Power shares are undergoing consolidation phase now, awaiting fresh catalysts for a break-up. As they have been consolidating for over 2 months, I suspect good news should be coming in next few weeks.
In terms of valuation, YTL is still cheap at 2024 forward PER of 13x (compared to 17x for Tenaga and 23x for PetGas). Earnings are expected to rise in coming quarters and coming years from:
1) Jordan Power which is running at full steam now amidst gas supply shortage in Jordan 2) Wessex Waters which may turn around as early as in Q3 FY2024 and to report bigger profit from 1st April 2024 3) data centre 1st phase with SEA Group which has been completed in Mar 2024 4) AI data centre which will complete 1st phase in early 2025 5) cement business which is seeing stable bulk cement selling prices in Jan-Mar 2024 while coal prices are under control 6) construction business which will add billions worth of contracts from AI data centre, warehouses for SEA, massive capex programmes of Wessex from 2025, prospects of HSR 7) hotels and shopping malls with full recovery of tourism activities 8) potential more asset monetisation such as injection of hotels into YTL REIT
I am not discounting the possibility of local institutional funds approaching YTL and YTLP for a private placement of 2%-3% at a discount to market prices, or simply accumulating from the open market.
This is likely so as YTL and YTLP are becoming among the largest cap companies in Bursa and local funds are encouraged to invest more money in Malaysia by bringing back funds from overseas.
But I am not suggesting anyone to chase high as there are always IBs trying to press the share price down ahead of their call warrants expiry. I suggest accumulation at low for long term investment.
@JMpower, as I wrote in my last post on YTL & YTLP, I think it will be fair to attach a PER of 20x for a well diversified conglomerate like YTL, hence a target price of RM4.00.
If YTL wins the HSR, then the upside is a lot bigger.
HSR 60-80billion project without government funding, use what to finance the loan? How much the price to sell per ticket? And how many ppl will travel from KL to SG, SG to KL? ROI is pretty low.
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....
Eagle77
6,815 posts
Posted by Eagle77 > 2024-03-27 15:27 | Report Abuse
This stock already overvalued @ overpriced may plunge at anytime guy ⬇️🩸🩸🩸