Saturday, August 24, 2013

YTL Power : No Dividends Again (MKE)

YTL Power International
Hold (unchanged)
Share price: MYR1.59
Target price: MYR1.75 (from MYR1.70)
No Dividends Again

 Overall in line. 4QFY13 core net profit of MYR341m (+5% YoY, +54% QoQ) brings FY13 net profit to MYR1,027m (-13% YoY), 97% of our and 94% of consensus forecasts respectively. There remains no quarterly dividend. The risk-reward from a privatization remains uncompelling in our view. Maintain HOLD, with a higher target price of MYR1.75 (to reflect an increase in treasury shares).

Mixed segmentals. Malaysia’s (power plants) 4QFY13 pretax profit declined 9% YoY due to an impairment of receivables. Singapore’s (Power Seraya) pretax profit jumped 185% YoY on improved margins due to lower operating expenses, and the lack of fuel trading losses (Power Seraya likely incurred fuel trading losses in 4QFY12).

UK healthy, Wimax losses unexpectedly widened. UK’s (Wessex Water) pretax profit rose 21% YoY, due to a price hike that took effect in October 2012. Wimax’s losses unexpectedly widened QoQ to MYR76m (from MYR55m in 3QFY13) due to increased costs. Nevertheless management remains optimistic on the future prospects of the division.

Benefiting from currency. Currency is moving in YTLP’s favour, with both the British Pound and the Singapore Dollar having strengthened by 7% and 3% respectively against the Ringgit since Jun 2013. A 1% appreciation of either currency raises our FY14 earnings by 0.4% and 0.6% respectively. For now, our forecasts are largely unchanged pending an update with management.

Raising target price to MYR1.75 (from MYR1.70). The increase is mainly to reflect the increase in treasury shares in FY13 (representing 2.4% of total shares). Our target price is based on a 10% discount to our RNAV estimate of MYR1.94, in turn derived from a sum-of-parts with each operating entity valued using DCF. Our target price implies a PER of 11.8x and P/B of 1.1x in FY14.

Source/Extract/Excerpts/来源/转贴/摘录: MKE-Research,
Publish date: 23/08/13

No comments:

Post a Comment

Warren E. Buffett(沃伦•巴菲特)
Be fearful when others are greedy, and be greedy when others are fearful
别人贪婪时我恐惧, 别人恐惧时我贪婪
投资只需学好两门课: 一,是如何给企业估值,二,是如何看待股市波动
吉姆·罗杰斯(Jim Rogers)

乔治·索罗斯(George Soros)



高估期间, 卖对, 不卖也对, 买是错的。
低估期间, 买对, 不买也是对, 卖是错的。

Tan Teng Boo

There’s no such thing as defensive stocks.Every stock can be defensive depending on what price you pay for it and what value you get,
  • Selected Indexes 52 week range

  • Margin of Safety

    Investment Clock

    World's First Interactive Investment Clock