KUALA LUMPUR (Feb 22): YTL Power International Bhd, whose shares have continued to rise by 48% since just the start of 2024, sustained its performance with net profit up four-fold to RM845.12 million in the second quarter ended Dec 31, 2023 (2QFY2024), from RM198.82 million last year.
Earnings per share rose to 10.43 sen, from 2.45 sen in 2QFY2023. Quarterly revenue rose 14.26% to RM5.37 billion, from RM4.7 billion, lifted by all key segments.
YTL Power operates a power business in Singapore, and has stakes in power plants in Jordan and Indonesia, categorised under investment holdings. It also owns water utility assets in the UK, as well as a controlling stake in the YES 5G telco operator.
For the six-month period (1HFY2024), net profit similarly is up four-fold to RM1.69 billion or 20.9 sen per share, from RM372.1 million or 4.59 sen per share.
Based on the 1HFY2024 results, YTL Power’s shares — which last closed at RM3.78 — traded at an annualised price-to-earnings ratio (PER) of nine times.
This marks the fourth consecutive quarter in which the group’s revenue has exceeded RM5 billion, lifting its 1HFY2024 revenue to RM10.82 billion, up 14.5% from RM9.45 billion in the same period last year.
Quarter-on-quarter (q-o-q), YTL Power’s earnings was flattish, down 0.3% compared to an RM847.9 million net profit in 1QFY2024, while revenue was down 1.3% q-o-q from RM5.45 billion.
The sustained performance was mainly thanks to stable earnings in Singapore, on the back of better margins and a stronger Singapore dollar against the Malaysian ringgit.
Its power generation segment contributed RM1.03 billion in pre-tax profit in 2QFY2024, and RM2.06 billion in 1HFY2024, it said.
Notably, the water segment — under Wessex Water — as well as YES telco business continued to be in the red in the six months period, despite higher revenue, although the telco business losses narrowed.
Other developments include its recent win in Singapore to develop a gas power plant in the island-state, as well as an ongoing 500MW solar plant project to power its data centre park in Kulai, Johor.
The first phase of its data centre, a Tier III facility to accommodate up to 72MW of capacity, is expected to be completed in the first half of this year.
On the UK business, it said Wessex Water continues to “explore low risk opportunities for organic growth within the wider UK group”.
Shares of YTL Power closed down 12 sen or 3.08% to RM3.78 on Thursday, giving the group a market capitalisation of RM30.84 billion. The counter has risen 414% in the past one year.