Latest news with #YTLPower
New Straits Times
13 hours ago
- Business
- 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
26-05-2025
- Business
- The Star
Higher contributions from Wessex Water for YTL Power
KUALA LUMPUR: YTL Power International Bhd could see a rebound in its financial performance in its fourth quarter of its financial year ending June 30, analysts say. This was expected to be underpinned by a rise in contributions from Wessex Water in Britain as a 21% water tariff increase there takes effect. YTL Power International's nine-month year-to-date results that were announced last week were mostly below expectations, at 72% of forecasts by CGS International Research (CGSI Research) and consensus. Despite an anticipated step up in the coming quarter's contributions from Wessex Water, CGSI Research revised the group's forecast net profits for this year down by 3% as weaker volumes are expected from YTL PowerSeraya Pte Ltd in Singapore. Meanwhile, YTL Power's third quarter's results were below Maybank Investment Bank Research's (Maybank IB Research) expectations on a more pronounced tapering of PowerSeraya's earnings. The research house continued to view YTL Power's risk-reward balance favourably on undemanding valuations and potential re-rating catalysts ahead. 'We maintain our earnings estimates. Our sum of parts based target price is adjusted to RM4.18,' RHB Research said.
Yahoo
25-05-2025
- Business
- Yahoo
YTL Power International Berhad (KLSE:YTLPOWR) Will Pay A Dividend Of MYR0.04
YTL Power International Berhad's (KLSE:YTLPOWR) investors are due to receive a payment of MYR0.04 per share on 10th of July. This takes the annual payment to 2.1% of the current stock price, which unfortunately is below what the industry is paying. We've discovered 1 warning sign about YTL Power International Berhad. View them for free. While yield is important, another factor to consider about a company's dividend is whether the current payout levels are feasible. Based on the last payment, YTL Power International Berhad was earning enough to cover the dividend, but free cash flows weren't positive. We think that cash flows should take priority over earnings, so this is definitely a worry for the dividend going forward. Looking forward, earnings per share is forecast to rise by 0.7% over the next year. If the dividend continues along recent trends, we estimate the payout ratio will be 23%, which is in the range that makes us comfortable with the sustainability of the dividend. View our latest analysis for YTL Power International Berhad The company's dividend history has been marked by instability, with at least one cut in the last 10 years. Since 2015, the dividend has gone from MYR0.10 total annually to MYR0.07. The dividend has shrunk at around 3.5% a year during that period. A company that decreases its dividend over time generally isn't what we are looking for. Given that the dividend has been cut in the past, we need to check if earnings are growing and if that might lead to stronger dividends in the future. It's encouraging to see that YTL Power International Berhad has been growing its earnings per share at 47% a year over the past five years. Rapid earnings growth and a low payout ratio suggest this company has been effectively reinvesting in its business. Should that continue, this company could have a bright future. Overall, we always like to see the dividend being raised, but we don't think YTL Power International Berhad will make a great income stock. While the low payout ratio is a redeeming feature, this is offset by the minimal cash to cover the payments. We would probably look elsewhere for an income investment. Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. For instance, we've picked out 1 warning sign for YTL Power International Berhad that investors should take into consideration. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
BusinessToday
23-05-2025
- Business
- BusinessToday
Looking Beyond YTL Power's Short Term Profit Softness
RHB Investment Bank Bhd (RHB Research), MIDF Amanah Investment Bank Bhd (MIDF Research) and CIMB Investment Bank Bhd (CIMB Securities) have all maintained their BUY calls on YTL Power International Bhd following the group's third quarter results for financial year 2025, with target prices revised to RM4.18, RM4.51 and RM4.00 respectively. The optimism centres on growth in its data centre and UK water operations, despite near-term profit softness from its Singapore power unit, PowerSeraya. RHB Research noted the group's core profit for 9MFY25 of RM2.1 billion, down 15% year-on-year, came in within expectations at 52% of RHB's full-year forecast. The house highlighted that the earnings decline, driven by a 31% drop in PowerSeraya's contribution, was partly offset by stronger performance from Wessex Water and reduced losses in its telco division. The target price was lowered from RM4.53 to RM4.18 to reflect dilution from unlisted warrants, with RHB applying a 2% ESG discount on YTL Power's intrinsic value. MIDF Research similarly flagged weaker-than-expected results, citing a 3QFY25 core net profit of RM551.8 million and a 9MFY25 total of RM1.95 billion, representing 63.5% of its full-year estimate. The house pointed out that the power segment's softness stemmed from a decline in Singapore's pool and retail prices, worsened by currency effects from a stronger ringgit. However, Wessex Water's improved tariffs and contributions from Ranhill Utilities helped cushion overall earnings. MIDF Research expects the UK water operations to strengthen further from the next quarter, boosted by a 21% tariff hike. CIMB Securities noted a 30% quarter-on-quarter drop in PowerSeraya's pre-tax profit to RM511 million due to rollover of contracts to lower tariffs and a fall in unit sales, compounded by a rising solar market share. The house estimates show Wessex Water's pre-tax profit surged 172% quarter-on-quarter to RM164 million on improved consumption and lower financing costs. CIMB Securities highlighted that YTL Power's total data centre capacity of 188MW is now fully contracted, with upcoming launches expected to drive earnings from late 1QFY26. All three research houses pointed to the company's ongoing expansion in artificial intelligence data centres as a key growth lever. RHB Research reported that the first 20MW AI-powered facility is ready for commercial launch within two months, while MIDF Research and CIMB Securities said the 80MW centre initially earmarked for AI will now be used for co-location, already taken up by a third party. According to CIMB Securities, total contracted revenue for YTL Power's data centre business stands at US$2.5 billion. Analysts agree the group's long-term prospects remain positive, anchored by diversification into high-margin infrastructure businesses. An interim dividend of 4.0 sen was declared. At RM3.60 per share, YTL Power trades at an undemanding valuation relative to future earnings potential, with projected yields between 1.8% and 2.5% in FY26. Related
New Straits Times
23-05-2025
- Automotive
- New Straits Times
YTL Power drives Malaysia's AI breakthrough
KUALA LUMPUR: YTL Power International Bhd is on track to launch Malaysia's first AI supercomputer by the third quarter of 2025, marking a major milestone in the country's digital transformation journey. Hosted at the 500-megawatt YTL Green Data Centre Campus in Johor, the system will be powered by the cutting-edge Nvidia GB200 Grace Blackwell Superchip, deployed via NVIDIA DGX Cloud. The rollout positions YTL Power as one of the first cloud service providers in Asia Pacific to offer the revolutionary Nvidia Blackwell Ultra platform. YTL Power managing director Datuk Seri Yeoh Seok Hong revealed that the DGX Cloud will be launched in tandem with ILMU 1.0, Malaysia's first locally developed large language model (LLM). "This AI cloud infrastructure will provide the foundation for the country's sovereign AI and will power our very own Malaysian-owned LLM, ILMU 1.0," he told Business Times. It will catalyse the development of local AI capabilities, paving the way for next-generation innovations built by Malaysians for Malaysians. Yeoh added that as the first in the region to deploy the Blackwell Ultra platform, YTL Power is proud to position Malaysia at the forefront of AI innovation in Asia Pacific. Alexis Bjorlin, vice president and general manager of DGX Cloud at Nvidia, confirmed to The Edge on Wednesday that the rollout is progressing smoothly and remains on schedule. She cited Malaysia's stable power infrastructure and strong manufacturing ecosystem as key reasons for choosing the country as a regional hub. Bjorlin also affirmed that YTL is Nvidia's inaugural partner in the region, a strategic collaboration she said would deliver significant mutual benefits and further expand the reach of advanced AI capabilities across Asia. The Blackwell Ultra platform is Nvidia's most advanced GPU architecture to date, with global shipments set to begin in the second half of 2025. However, YTL Power's early adoption guarantees that Malaysia will have access to this next-generation infrastructure before the rest of the world. In a statement issued in mid-March, Yeoh reiterated the group's commitment to delivering powerful, enterprise-grade AI cloud computing to the region. With YTL Cloud, its subsidiary and designated Nvidia cloud partner (NCP), the group is now among the first in Asia Pacific to offer commercial access to Blackwell-powered infrastructure. Hong said the collaboration with Nvidia enables Asia to access the most advanced AI platforms and solutions, ensuring the region remains competitive and aligned with global technological progress as the world moves rapidly into an AI-driven future.
