YTL Corp expects its business to stay resilient
PETALING JAYA: YTL Corp Bhd expects the performance of its business segment to remain resilient going forward due to the essential nature of its operations.
For the third quarter ended March 31, 2025 (3Q25), the group posted a 15.5% year-on-year (y-o-y) decline in net profit to RM419.4mil, translating to an earnings per share of 3.81 sen. This is despite a higher revenue which grew by 1.5% y-o-y to RM7.3bil.
For the nine-month period ended March 31, 2025 (9MFY25), YTL Corp's net profit was down by 17% y-o-y to RM1.3bil, while revenue was up by 4% y-o-y to RM23.2bil.
Earnings before interest, tax, depreciation and amortisation for 9MFY25 remained steady at RM6.9bil, compared with RM7bil for 9MFY24.
YTL Group executive chairman Tan Sri Francis Yeoh Sock Ping said the group delivered solid results for the period under review, with all divisions continuing to turn in healthy performances.
'Results from our utilities segment moderated following an exceptional performance driven by the power generation sub-segment in Singapore last year, and we continue to see good turnaround in the UK water and sewerage sub-segment,' he said in a statement yesterday.
Yeoh added that the cement division recorded a strong set of results, whilst higher revenue in the construction segment due to an increase in work volumes from third-party construction projects was impacted by elevated construction costs.
'Meanwhile, the hotels division continued to achieve higher occupancy rates and stronger average room rates across key properties,' he said.
YTL Power recorded revenue of RM16.25bil for 9MFY25 compared to RM15.98bil for the corresponding 9MFY24. Profit before tax decreased to RM2.24bil for the current period under review over RM2.88bil for the same period last year, whilst profit after tax stood at RM1.79bil this year compared to RM2.39bil for the same period last year.
YTL Power executive chairman Yeoh said the group's performance remained strong for the financial year to date, prompting a higher interim dividend of 4 sen per share.
'Performance of the power generation segment in Singapore has continued to moderate on the back of lower pool and retail prices, following exceptional results seen last year. In our water and sewerage segment, higher revenue resulted from the increase in price allowed by the UK regulator, as well as revenue contribution from our operations in Malaysia, with profit improving primarily due to the said price increase in the UK, coupled with the decrease in inflationary pressures on index-linked bonds,' he said.
Yeoh added that the telecommunication segment recorded better performance in the current period due to higher project revenue, whilst in the investment holding segment, higher revenue was contributed mainly by the consultancy services sub-segment, although profit was impacted by unrealised foreign exchange losses.
YTL Power declared a higher interim dividend of 4 sen per ordinary share in respect of the financial year ending June 30, 2025, compared to 3 sen per ordinary share declared in the corresponding quarter last year. The book closure and payment dates for which are June 25, 2025 and July 10, 2025, respectively.
Meanwhile, Malayan Cement's revenue remained stable at RM3.42bil for 9MFY25 compared to RM3.41bil for the corresponding 9MFY24. Profit before tax increased 43% to RM718.3mil for the nine months under review compared to RM503.4mil for the same period last year, whilst profit after tax rose 59% to RM507.5mil in the current period under review over RM318.7mil for the same period last year.
Malayan Cement executive chairman Yeoh said the better performance was due to improved operational efficiencies, lower production costs, reduced borrowing costs and the absence of recognition of share option costs in the current quarter, coupled with a one-off gain from a compulsory land acquisition recorded in the last quarter.
'The group's ongoing cost reduction and efficiency efforts, supported by strong leadership and innovation, have yielded positive results. All business units contributed to the improved performance, showcasing the strength of the group's diversified portfolio, with the ready-mix concrete business excelling in delivering high-value, bespoke products tailored to the evolving needs of the construction industry,' he said.
Meanwhile, YTL Hospitality REIT recorded revenue of RM421.3mil for 9MFY25, approximating that of the corresponding 9MFY24, whilst net property income grew 2% to RM228.1mil for the current period under review compared to RM223.7mil for the same period last year.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Straits Times
5 hours ago
- New Straits Times
YTL Power's AI compute could lift FY26 earnings by 4pct
KUALA LUMPUR: YTL Power International Bhd's artificial intelligence (AI) compute initiative is on track for a launch in the third quarter of 2025 (3Q25). Maybank Investment Bank Bhd (Maybank IB) expects this to drive a potential net profit increase of around four per cent in financial year 2026 (FY26) and six per cent in FY27. The firm continues to view YTL Power's risk-reward profile positively, especially given its undemanding valuations. This optimism is supported by the anticipated confirmation of Wessex's medium-term recovery as well as encouraging progress in its data centre and AI compute business. Maybank IB maintained a 'Buy' rating on YTL Power with an unchanged target price of RM4.20. Based on news reports, it said the group's AI compute business is on track to go live in 3Q25. "While substantially more capital expenditure intensive on a per megawatt (MW) basis, the gestation period is likely minimal, unlike data centre colocation, because graphic processing units, which are the biggest cost item, are typically only procured after securing off-takers. "Thus, upon commissioning, AI compute is likely to be immediately earnings accretive to YTL Power, in our view," it added. Assuming a 20MW deployment as planned, Maybank IB said YTL Power could incur about RM2.1 billion in capital expenditure, which could, in turn, generate around RM130 million in profit after tax annually. It said a 3Q25 launch for the initial 20MW would allow AI compute to contribute at least three quarters to YTL Power's FY26, potentially lifting its net profit forecasts by about four per cent and six per cent for FY26 and FY27, respectively.
The Star
10 hours ago
- The Star
House discount cancelled
GEORGE TOWN: Two days after announcing a 5% discount for Indian Muslim homebuyers in Penang, the offer was rescinded in a state government U-turn. The proposal is now back on the drawing board after Penang DAP chairman Steven Sim raised the issue with Chief Minister Chow Kon Yeow. Although the discount was intended to boost demand for unsold new properties in Penang, state MCA secretary Yeoh Chin Kah criticised the move as racially divisive. By offering the privilege only to Indian Muslims, Yeoh questioned whether it amounted to a new form of racial quota. 'The people of Penang cannot accept this policy and condemn it for dividing the races,' he said. Yeoh questioned why the Penang government could not base its housing policy on economic status rather than race and religion, expressing confusion that DAP, a party advocating for a 'Malaysian Malaysia', would introduce such a racially framed initiative. 'Don't low-income groups who are not Indian Muslims also need assistance? Shouldn't struggling families be treated equally and helped regardless of background?' he added. Penang Hindu Association president Datuk P. Murugiah said that if there is an overhang of properties in the state, offering a discount to only one ethnic group is unfair. 'The discount should be for all Penangites regardless of race, especially the B40 and M40 groups, with priority given to B40 families,' he said. Murugiah said the privilege should, rightly, even be extended to anyone born in Penang. Sim, in a statement yesterday announcing that Chow had agreed to suspend the discount offer pending a review by the state executive council, emphasised the importance of upholding social justice and ensuring every Malaysian's right to own a home. 'I take note of the public feedback regarding the 5% discount given to the Indian Muslim community only for the purchase of unsold (overhanging) new property units in Penang,' he said. Sim said he had discussed the matter with Chow, who agreed to bring it up for review and discussion at the upcoming state executive council meeting. About an hour earlier, state housing and environment committee chairman Datuk Seri S. Sundarajoo had again announced that from June 1 this year until May 31 next year, developers would be encouraged to offer Indian Muslims who are first-time homebuyers a 5% discount. He first made the announcement on June 5. Sundarajoo said the decision was made during yesterday's meeting of the state executive council and the state planning committee meeting on Tuesday, following discussions with housing industry stakeholders. He added that the discount excludes bumiputra quota units and does not affect existing housing policies. The provision of the discount is based on developers' corporate social responsibility and does not involve financial support or subsidies from the state government. The provision of the discount relies on the corporate social responsibility of the developers and does not include any financial support or subsidies from the state government. Sundarajoo said that, based on the Penang Property Market Report for the fourth quarter of 2024 by the National Property Information Centre, 2,796 residential units have been identified as overhung, involving various property types across the state. He described the number of unsold new affordable housing units in Penang as worrying, adding that the discount was an intervention by the state to help revitalise the housing sector.
The Star
11 hours ago
- The Star
Sparkling potential in gemmology
As industries evolve and the demand for ethically-conscious, scientifically-skilled professionals increase, gemmology is fast gaining traction, said Gemological Institute Malaysia sales and marketing manager Tan Zhi Peng. He said for students with a passion for precious gems and a curiosity for how the natural world intersects with design and business, Malaysia's gem and jewellery industry presents growing and meaningful opportunities. 'Gemmology is the scientific study of gemstones, encompassing their formation, properties, identification and classification. 'In an era where authenticity and ethical sourcing are important, gemmology ensures the integrity of the jewellery industry,' Tan explained, adding that it enables professionals to verify the origin, quality and authenticity of gemstones, thereby building consumer trust and upholding industry standards. Professionals entering the field, he stressed, must be well-versed in international certification standards, such as those from the Gemological Institute of America (GIA), or hold a diploma in gemmology. Awareness of global ethical sourcing practices is also essential. 'There is a growing consumer demand for transparency and ethical sourcing. 'Consumers are increasingly seeking certified gemstones that are conflict-free and sourced responsibly, with considerations for environmental sustainability and fair labour practices. 'Understanding the properties and value of gemstones enables professionals to make informed decisions in design aesthetics, pricing strategies, and marketing,' he said. He also pointed out that Malaysia's gem and jewellery industry saw jewellery exports reach RM7.7bil in 2023 – up from RM7.39bil in 2022. According to projections, he said the Malaysian jewellery market, valued at approximately US$10.11bil (RM47.58bil) in 2022, is expected to grow to US$12.45bil (RM58.52bil) by 2029, reflecting a compound annual growth rate of 3.0%. 'Export-wise, Malaysia has established itself as a significant player, particularly in the gold jewellery segment, with key export destinations including Singapore, the United Arab Emirates and Hong Kong. 'The industry's growth and the increasing emphasis on ethical practices have expanded the demand for skilled professionals in these areas,' he added. He highlighted Tomei Consolidated Berhad as an example of a prominent Malaysian company offering a variety of career opportunities for gemmology graduates. 'Gemmology graduates have diverse career opportunities, including roles such as gemstone appraisers, jewellery designers, quality control specialists, auction house consultants and retail managers. 'At our institution, gemmology education provides a solid foundation in the scientific aspects of gemstones, which is invaluable for careers in jewellery design, appraisal, and merchandising,' he said, adding that specialised roles like gemstone appraisal and auction house consultancy are also becoming increasingly sought-after. 'These professionals play a critical role in the market for high-value and investment-grade jewellery. 'Their expertise ensures accurate valuation for insurance, resale and investment, making them indispensable in a growing industry,' he said.
