Pmx is a very week leader. He kow tow to Sarawak, Sabah, Johor state govt and also umno. But strange he is very vocal against Dap which is his strongest ally in govt. That why speakup no longer support Pmx
There seems to be rotational plays in blue chip counters by foreign funds.
Having bought Gamuda and IJM in a big way in June 2024, foreign funds started selling Gamuda by dumping RM16 million worth of Gamuda shares last Friday and RM50 million worth of Gamuda shares last Thursday.
Foreign funds bought in a total of RM16 million worth of YTL Power shares and RM13 millon worth of YTL shares last Friday.
All info already given by draagon i think. Just collect and hold if the price is right.. fundamentals for both ytl and ytlp intact..in longer timeline i only see the revenue increased along the PAT
Foreign funds continued selling Gamuda (RM11 million sale value) and IJM (RM7 million) yesterday. They turned sellers of YTL Power as well at RM8 million yesterday. Foreign funds were not the main sellers of YTL shares yesterday but local institutional funds at RM12m yesterday.
But net buys from local institutional funds (RM12 million) and local retailers (RM12 million) in YTL Power were more than enough to offset the sell down by foreign funds, but these local funds and retailers tend to accumulate on weakness, and not pushing share price higher.
As statistics shows, foreign funds selling on YTL Power and YTL is abating as they have offloaded more than half of their earlier purchases in Jan-Mar 2024 with heavy selling of RM231m worth of YTLP shares in June 24 alone, and estimated selling of RM50m so far in July 24. Estimated holdings by foreign funds are estimated to have come down to RM430m for YTL Power and RM100m for YTL, which should be able to be adsorbed by local institutional funds for long term investment holdings once these hot foreign money decides to quit.
It looks like a good deal to YTL in the acquisition of NSL Singapore. That will help YTL to expand its cement and precast concrete business markets to Singapore, Dubai and Finland.
The acquisition price is at a discount of about 20% to book value, but there is no info on NSL earnings.
This acquisition will help YTL to bid for construction projects in Singapore, Dubai and UK area. Particularly in the UK, YTL is doing the construction work for Wessex's massive capex programmes of GBP3.5 billion in 2025-2030, as well as Brabazon property projects worth GBP1.3 billion over next few years. These 2 projects will contribute almost RM29 billion of construction order book to YTL Group in the UK alone.
holy cow !!! nsl is a loss making company with S$15.5m loss in 2023 but made profits of 6.4m and 13.9m in 2021 and 2022 respectively. It also has low reserves at S$80m with share cap at S$193m. Reserves have been reducing from 300m in 2020 to 80m in 2023, which is a little alarming, but icing on cake is that it has group net cash holding of S$103m, which is about RM482m, of which ytl paid RM792 for 81% which is RM641m.... thats fin data in a nutshell..... i dont think market will take this lightly...... errrr :-) cheers
If NSL is a super profit company who want to sell? It depends on the new owner how to turn lost into profit making company. Important is the business within the group able to create synergies for the new owner
NSL was profitable in 2023 if not for an impairment loss, excluding that NSL made a net profit of S$16 million. And it had a net cash of S$103m, minus out net cash, the net acquisition price of (S$280m - S$103m)= S$177m actually values NSL at just 11x PER.
NSL is the leading supplier of precast concrete components in Singapore. The prospects for NSL are bright as there will be mega construction projects taking off in Singapore in near term: 1) Changi Terminal 5 - S$10b 2) Integrated Resorts (Marina Bay Sands and Sentosa) expansion - S$9b 3) Tuas mega port - S$20b 4) MRT projects - S$57b 5) various new data centre work in Singapore and Johor - RM30-40b (YTL Power's data centre jobs alone will contribute over RM20 billion of internal construction orderbook to YTL)
yup @dragon328. with this acquisition definitely will benefits YTL's data center and power plant beside venturing into construction project in Singapore, Dubai
Unfortunately the market seems to be having the typical sell-on-news attitude without looking at the long term merits and synergies of NSL to YTL group.
Most just focus on short term issues like a headline loss making NSL in 2023 and increased gearing for YTL.
Car is the same just see who is the driver. If this is super cash cow company who want to sell? Most important is the new driver able utilise and benefits
@dragon328, this is normal, some investors have different risk tolerance and might not like the acquisition, so they sell their holdings, it's all good, it is important to note also the PBU business for NSL in Finland is not doing so well, so that might be one of their reasons to sell
@cwc1981, NSL does seem to be getting ready to sell to potential buyers, in FY2023, they declared huge dividends to shareholders and also spring cleaning (heavy impairments)
@ravetidus I fully agreed with you. Of course whoever want to sell off property definitely will remove all the valuable items in the premises unless the new buyer intent to pay for everything
This NSL acquisition for me is like a repeat of MCement...
Lafarge was loss making due to the inefficiency of the entire Lafarge operations...
I had a friend who worked in Lafarge before and shared to me everyday she was asked to analyze how YTLCement at that time was not suffering as they were...
When she got absorbed into YTLCement after the merger, she got the answer. It is cost control... Sometimes companies after operating for too long tend to get into the comfort zone...
@Ravetidus, the prefab bathroom unit (PBU) of NSL in Finland may not be doing as well as expected, but still the note says that NSL expanded its Finland capacity from 7,000 units to 10,000 PBUs per annum in 2023. That may be timely to meet internal demands as YTLPower's property unit in the UK is developing the largest township in Brabazon and on track to deliver 6,500 new homes there in next few years. That will add demands for 20,000 PBUs assuming each new home has 3 bathrooms.
According to latest data, foreign funds net bought a total of RM12 million worth of YTL shares and RM10 million worth of YTL Power shares yesterday. Local funds also net bought a total of RM15 million worth of YTL Power shares yesterday, hence the rally in share price yesterday.
The past few days of data shows that foreign funds are mixed / divided in YTL and YTL Power, some are taking profits, others are buying. Or some funds take profit on price strength and buy back on price weakness.
As YTL Power is very cheap at 11x PER for a large utility and AI play, despite the 7x increase in share price in one year, it makes the decision to buy or to take profit on YTL Power rather difficult to fund managers. Hence I do not expect foreign funds selling on YTL and YTL Power to be significant in next few months, after trimming more than half of their holdings in May and June 2024.
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....
cwc1981
1,373 posts
Posted by cwc1981 > 2024-07-21 11:21 | Report Abuse
So Agong said built HSR, Anwar built HSR?