YTLpower oh YTLpower by AMRESEARCH

KUALA LUMPUR: AmResearch has maintained its Hold call on YTL Power International (YTLP) with a higher fair value of RM1.86 a share as YTLP has submitted the lowest bid at 22 sen/kWh for the Energy Commission’s tender of Project 3B involving a 2,000MW greenfield coal-fired power plant.
“YTLP, which submitted the bid with Ranhill Power, has proposed Tanjung Tohor in Johor as the site for the new plant which is expected to cost RM12bil and scheduled to be commissioned in stages in Oct 2018 and Apr 2019.
“The other bidders for the tender were Tenaga Nasional, MMC Corp’s Malakoff Corp,Formis Resources and 1Malaysia Development. The second closest bid was 1MDB’s proposal at a brownfield site at Jimah, Negeri Sembilan, which apparently does not appear to be in compliance with the terms for a greenfield site,” it said.
AmResearch said Malakoff, which proposed Pulau Carey in Selangor, submitted a bid at 26 sen/kWh.
“Surprisingly, Tenaga’s bid at Tanjung Hantu, Segari in Perak turned out to be the most expensive at 28 sen/kWh.
“If YTLP successfully secures this PPA, it should significantly improve the stock’s prospects given that its current PPAs for the Paka and Pasir Gudang power plants expire in September 2015. 
“Upon full completion, we estimate that the project could add RM440mil to the group’s net profit, or 33% of FY16F earnings,” it said.