KUALA LUMPUR (July 1): Shares of YTL Power International Bhd (KL:YTLPOWR) climbed to their highest level in nearly two years on Wednesday, after RHB Investment Bank said it may list its data centre business next year.

RHB Investment Bank in a report on Wednesday said management is considering listing its data centre business next year to raise funds and unlock value. 

It said the data centre business could be valued at RM28 billion or RM3.06 a share, potentially giving 12% upside and a bull-case target price of RM6.63. RHB Investment Bank kept its 'buy' rating and raised its target price to RM6. 

YTL Power’s share price reached an intraday high of RM4.50 a share before settling 29 sen or 6.9% higher at RM4.47, valuing the utilities group at about RM39 billion. Some 37.4 million shares were traded.

YTL Corp Bhd (KL:YTL), which holds about 52% of YTL Power, reached an intraday high of RM2.18 before closing 12 sen or 5.9% higher at RM2.16, giving the company a market capitalisation of about RM25.2 billion. Some 33.3 million shares were traded. 

Both counters were among the top most actively traded stocks on the exchange on Wednesday.

RHB Investment Bank said YTL Power was expanding its data centre business faster than previously expected to meet strong customer demand.

The research house now expects the group’s data centre capacity to reach 578MW by June 2028, compared with its previous forecast of 420MW. YTL Power is targeting up to 1.2GW at its data centre park in Kulai, Johor, double the initial planned capacity.

RHB Investment Bank also raised its earnings forecasts by 2% for the financial year ending June 2027 (FY2027) and 6% for FY2028, reflecting the faster data centre rollout and stronger contributions from Ranhill Utilities Bhd (KL:RANHILL).

Key risks include higher fuel costs and weaker retail margins at Singapore-based PowerSeraya, as well as delays in completing the data centres.