Saturday, October 5, 2013

YTL Power : Yield compression (DBSV)

YTL Power
HOLD RM1.78
KLCI: 1,801.83
Price Target: 12-Month RM1.70
Yield compression

•Dividend cut to conserve cash for acquisition
•New acquisitions are crucial to cushion against earnings drop after expiry of Malaysian PPAs in 2015
•Maintain HOLD with TP of RM1.70

More challenging outlook. Operating outlook for YTLP will be more challenging over the next few years, due to rising capacity in Singapore’s electricity market that will eventually pressure margins and sales volumes. The lingering European crisis could also limit returns from Wessex upon the expiry of the current regulatory regime in 2015.


Conserving cash for acquisition. YTLP’s FY13 yield is limited to 0.6% and this might disappoint long-term investors. However, this is a strategic move to conserve cash for future acquisitions. We expect YTLP to continue to bid for regulated assets overseas, given its RM10bn cash hoard at end Jun13, to compensate for potentially lower earnings from PowerSeraya and Wessex Water, as well as expiry of Malaysia PPAs in 2015.

Lacking in catalyst; maintain HOLD. YTLP’s share price improved 10% over the last month, supported by its share buyback plan and decent valuations. Talk on potential privatisation by YTL Corp is still ongoing, but timing is uncertain. YTL Corp is likely to fund the privatisation by issuing YTL Corp’s shares. Maintain  HOLD with DCF-derived TP of RM1.70. The stock lacks near-term catalysts. Our HOLD rating is premised on reasonable valuations and stable earnings.



Source/Extract/Excerpts/来源/转贴/摘录: DBSV-Research,
Publish date: 04/10/13

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)
“错过时机”胜于“搞错对象”:不会全军覆没!”
做自己熟悉的事,等到发现大好机会才投钱下去

乔治·索罗斯(George Soros)

“犯错误并没有什么好羞耻的,只有知错不改才是耻辱。”

如果操作过量,即使对市场判断正确,仍会一败涂地。

李驰(中国巴菲特)
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,
冷眼(冯时能)投资概念
“买股票就是买公司的股份,买股份就是与陌生人合股做生意”。
合股做生意,则公司股份的业绩高于一切,而股票的价值决定于盈利。
价值是本,价格是末,故公司比股市重要百倍。
曹仁超-香港股神/港股明灯
1.有智慧,不如趁势
2.止损不止盈
成功者所以成功,是因为不怕失败!失败者所以失败,是失败后不再尝试!
曾淵滄-散户明灯
每逢灾难就是机会,而是在灾难发生时贱价买股票,然后放在一边,耐性地等灾难结束
  • Selected Indexes 52 week range

  • Margin of Safety

    Investment Clock

    World's First Interactive Investment Clock