Written by The Edge Financial Daily
Monday, 24 August 2009 09:15
KUALA LUMPUR: AmResearch has downgrade its call on YTL POWER INTERNATIONAL BHD [] (YTL Power) from BUY to HOLD with a revised Sum-of-Parts (SOP) based fair value of RM2.35/share.
"Until YTL Power secures additional value-enhancing assets, we do not expect further upside to its share price at this juncture," it said on Aug 24.
It said YTL Power's FY09 net profit of RM626 million came in below expectations, 29% below its forecast and 24% below consensus. This stemmed from the massive one-off deferred tax provision of RM442mil for Wessex Water, arising from the progressive abolition of UK industrial building allowances from 2008 until 2011.
But the group's FY09 pre-tax profit of RM1.4 billion was 14% above its and consensus forecast of RM1.2 billion due to strong contribution from Power Seraya, which was acquired on March 6, 2009.
Also, YTL Power declared a fourth gross interim dividend of 3.75 sen, to bring total dividend for FY09 to 13.9 sen, up from 11.3 sen in FY08.
"We have raised our FY10F-FY11F earnings by 26%-29% mainly due to higher estimates for Power Seraya and raised our SOP fair value to RM2.35/share from RM2.20/share previously mainly due to a 60% increase in our disocunted cashflow estimate for Power Seraya to RM3.8 billion," it said.
Monday, 24 August 2009 09:15
KUALA LUMPUR: AmResearch has downgrade its call on YTL POWER INTERNATIONAL BHD [] (YTL Power) from BUY to HOLD with a revised Sum-of-Parts (SOP) based fair value of RM2.35/share.
"Until YTL Power secures additional value-enhancing assets, we do not expect further upside to its share price at this juncture," it said on Aug 24.
It said YTL Power's FY09 net profit of RM626 million came in below expectations, 29% below its forecast and 24% below consensus. This stemmed from the massive one-off deferred tax provision of RM442mil for Wessex Water, arising from the progressive abolition of UK industrial building allowances from 2008 until 2011.
But the group's FY09 pre-tax profit of RM1.4 billion was 14% above its and consensus forecast of RM1.2 billion due to strong contribution from Power Seraya, which was acquired on March 6, 2009.
Also, YTL Power declared a fourth gross interim dividend of 3.75 sen, to bring total dividend for FY09 to 13.9 sen, up from 11.3 sen in FY08.
"We have raised our FY10F-FY11F earnings by 26%-29% mainly due to higher estimates for Power Seraya and raised our SOP fair value to RM2.35/share from RM2.20/share previously mainly due to a 60% increase in our disocunted cashflow estimate for Power Seraya to RM3.8 billion," it said.