YTL Power

[winston]

not vested

YTL Power on track for long-term growth

YTL Power International Bhd’s data centre (DC) projects development are on track to provide long-term earnings growth from financial year 2026 onwards.

Spanning 200 acres, YTL’s green DC park in Kulai, Johor, is currently designed to accommodate a total IT load capacity of 450MW (facility load 600MW).

The project is planned for phased development, initially set over a 10-year period. There is a direct dark fiber cable route (owned by the YTL Group) from the site to Singapore.

Source: The Star

https://www.thestar.com.my/business/bus ... erm-growth

[winston]

not vested

MIDF Research: YTL Power on track to deliver data centres, with second 8MW under Johor Data Centre 1 to come online by year end

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/737795

[winston]

not vested

YTL Power International - YTL Data Centre: A Field Report

Date: 2024-12-09
Firm: KENANGA
Price Target: 5.00
Price Call: BUY

We have fine-tuned our earnings model following a recent site visit to YTL Data Centre Park in Johor.

The delivery timelines for the AI DC (JDC2) and JDC3 remain on track, albeit negotiations with off-takers for the 2nd phase of both DCs are yet to be finalised.

We see value in YTLPOWR, with the recent share price retracement presenting a buying opportunity.

However, the key focus remains on DC delivery over the next 12 months, which is crucial to its earnings performance.

We maintain our OP rating and TP of RM5.00 with a potential blue sky fair value of RM6.53.

Source: Kenanga

https://klse.i3investor.com/web/priceta ... arch/73909

[winston]

not vested

YTL Power - All Eyes On AI-DC Deal; Keep BUY
Date: 2024-11-27
Firm: RHB-OSK
Price Target: 4.70
Price Call: BUY

Keep BUY, new MYR4.70 TP from MYR5.68, 47% upside with c.2% FY25F (Jun) yield.

Although YTL Power’s 1QFY25 results missed our estimate, we believe the moderation in its net profit will still be largely anchored by its UK subsidiary Wessex Water’s earnings recovery.

Management guided that the first 20MW artificial intelligence data centre (AI-DC) project is on track and the negotiations on this deal are at an advanced stage.

Source: RHB

https://klse.i3investor.com/web/priceta ... arch/73582

[winston]

YTL Power International Berhad - Normalising Earnings from Seraya
Date: 2024-11-27
Firm: MIDF
Price Target: 5.64
Price Call: BUY

KEY INVESTMENT HIGHLIGHTS

1QFY25 earnings within expectations

Normalisation of earnings from Seraya; Wessex Water continues to benefit from tariff increase

Another 8MW DC coming online by end-2024

Maintain BUY with a revised TP of RM5.64

Source: MIDF

https://klse.i3investor.com/web/priceta ... arch/73517

[winston]

vested

Higher UK water tariffs to lift YTL Power earnings

Wessex will be allowed to raise water tariff rates by as much as 21% in 2025 to 2030.

CIMB estimated Wessex’s net profit to turn around in FY25 to RM133mil and then jump to RM346mil and RM339mil in FY26 and FY27.

On the issue of getting graphic processing unit chips for its proposed artificial intelligence (AI) DC in Johor, the research house is confident YTL Power will be able to attain national validated end-user status necessary to have access to the ship as the offtakers for its AI DCs are US-based hyperscalers.

In case of delays in GPU deliveries and lower AI DC take-up and lease prices, CIMB Research put the fair value of YTL Power at RM3.79 a share, a valuation which excludes contribution from the AI DC segment.

Source: The Star

https://www.thestar.com.my/business/bus ... r-earnings

[winston]

vested

YTL Power to benefit from US policy

By GANESHWARAN KANA

YTL Power can apply for the National Validated End User (NVEU) status in order to secure enough GPUs for its DC park in Kulai, Johor.


DC operators under the NVEU status will be entitled up to 320k H100 equivalent GPUs over two years. HLIB Research also said that the government can also help YTL Power secure advanced chips.

“The government can enter into government-to-government (G2G) deals with the United States if YTL Power develops the 100MW over a longer four to five year period.”

HLIB Research said YTL Power remains on track to commence the first 20MW AI infrastructure in the second quarter of 2025.

“Existing DC1 (Shopee) and DC4 progress rollout are not affected by the new rulings.

Source: The Star

https://www.thestar.com.my/business/bus ... -us-policy

[winston]

vested

Timing flexibility

YTLP’s proposed bonus issue of warrants provides some timing flexibility to shareholders’ incremental capital commitment, but could potentially create an extended “dilution overhang” for the stock, in our view.

Nevertheless, we continue to view YTLP’s risk-reward favourably.

Reiterate BUY with an unchanged SOP-based TP of MYR4.70, with positive progress on its AI compute business being a potential re-rating catalyst.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/432207.pdf

[winston]

vested

YTL Power's current share price fully discounts data centre value — Kenanga Research

By Isabelle Francis

Kenanga ascribed a valuation of RM1.04 to YTL Power's data centre venture, without which its target price of RM5 would have been RM3.96.

Kenanga said it does not foresee YTL Power building a data centre and securing graphics processing units without a firm offtaker, meaning it is unlikely that the company is taking excessive demand risk.

To factor in the full brunt of the dilution on the warrant exercise, according to Kenanga, YTL Power's target price (without its data centre business) would be RM3.45.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/742670

[winston]

vested

YTL Power International Bhd reported revenue of RM5.68 billion in Q2FY2024, marginally lower than RM5.68 billion in the preceding quarter.

However, pre-tax profit surged 51 per cent to RM773.1 million from RM510.6 million previously.

Operations in Singapore's power generation market stabilised following an exceptional performance in the previous year, while the water and sewerage businesses in the UK and Malaysia, along with the telecommunications segment, also showed improvements.

Source: NST

https://www.nst.com.my/business/corpora ... s-rm102bil