CEO Morning Brief

YTL Corp Posts 14-fold Increase in 1Q Profit to RM521.7 Mil

Publish date: Fri, 24 Nov 2023, 08:46 AM
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TheEdge CEO Morning Brief

KUALA LUMPUR (Nov 23): YTL Corp Bhd posted its best quarterly net profit since 2006 at RM521.7 million in the quarter ended Sept 30 (1QFY2024), as all business segments' contributions grew save for construction.

The latest quarter results represented a 14-fold increase from RM36.62 million in the same quarter last year. Quarterly earnings per share rose to 4.76 sen from 0.33 sen, its filing showed.

Revenue in the quarter rose 15.91% to RM7.52 billion, from RM6.49 billion.

YTL Corp’s best quarterly profit attributable to owners of the company was RM858.81 million, recorded in 2QFY2006, against revenue of RM1.29 billion.

In its latest quarter under review, the conglomerate’s two biggest contributors were utilities through YTL Power International Bhd in which it has a 49.08% direct and a 6.49% indirect stake, and cement and building materials through 78.58% indirect-owned Malayan Cement Bhd.

YTL Corp also operates in the hotels segment through YTL Hospitality REIT, where it holds a 55% direct and a 3.63% indirect stake, as well as property investment and development, and management services.

The Yeoh family owns 50.2% in YTL Corp through Yeoh Tiong Lay & Sons Holdings Sdn Bhd.

The cement segment saw “higher volumes and stabilization in selling prices for both domestic cement and ready mixed concrete, offsetting the impact of higher energy costs”, said executive chairman Tan Sri Yeoh Seok Ping.

Meanwhile, the utilities segment recorded better margins and the strengthening of the Singapore Dollar against the ringgit, while the water and sewerage segment through Wessex Water UK saw higher revenue but continued to be affected by higher interest accruals on index-linked bonds.

On its biggest contributor YTL Power, net profit rose nearly five-fold to RM847.91 million or 10.47 sen per share, from RM173.28 million or 2.14 sen per share mainly from its Singapore electricity generation and retail operations.

Its investment holdings posted a huge turnaround to pre-tax profit of RM112.57 million, from losses of RM6.5 million in which it pointed to the upcoming data center in Kulai, Johor.

Quarter-on-quarter, however, YTL Power’s net profit fell 25.05% from its record RM1.13 billion in 4QFY2023 due to adjustments linked to the commercial operations of its Jordan oil shale power plant joint venture, and lower forex gain in this quarter. Revenue fell 23.1% q-o-q from RM7.09 billion due to lower power generation segment revenue, it said.

Malayan Cement separately posted a strong net profit of RM96.1 million or 7.34 sen per share from RM953,000 or 0.07 sen per share a year ago, on revenue increase of 33.67% to RM1.15 billion, from RM858.85 million.

Quarterly revenue rose 14.78% to RM5.45 billion, from RM4.74 billion.

Shares of YTL Corp slipped three sen or 1.96% to RM1.50, giving it a market capitalization of RM16.53 billion. The counter has climbed by over 150% this year.

YTL Power shares closed unchanged at RM2.30, giving it a market capitalization of RM18.76 billion. The counter has risen by over 200% this year.

For Malayan Cement, the counter closed up six sen or 1.55% at RM3.94, giving it a market capitalisation of RM5.16 billion. The counter has risen by over 80% this year.

Source: TheEdge - 24 Nov 2023

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