RHB Research lowers target price for YTL Power on potential headwinds

  • We must carry on Karpal’s struggle, says Kit Siang
    We must carry on Karpal’s struggle, says Kit Siang

    A light may have gone out in the country with the sudden death of Karpal Singh but his party comrade Lim Kit Siang said the best way to honour his memory is to continue with his fight for “justice, rule of law and democracy”. The DAP adviser said Malaysians, including those who had never met Karpal, have taken his death as a personal loss,... …

  • Penang to give Karpal official send-off

    The Penang government will provide veteran lawmaker Karpal Singh an official send off.   According to Chief Minister Lim Guan Eng, the Penang flag would be used to cover Karpal's cortege.   All state agencies will fly the Penang flags at half-mast for three days until the funeral on Sunday, said Lim.   He added that a public ceremony at the Dewan Sri Pinang will be held on Sunday from 9am to 11am for the public to pay their respects.    Lim said that the state exco had decided on this during an …

  • Sarawak leaders hail Karpal’s tenacity to fight until the end
    Sarawak leaders hail Karpal’s tenacity to fight until the end

    If there is one thing that politicians on both sides of the divide in Sarawak agree on about Karpal Singh, it is his dogged tenacity “to fight until the end” to uphold his beliefs. “We may not be on the same side of the divide but I admire his unwavering stand on certain political issues which he believed in,” Sarawak Land Development Minister... …

  • Kelantan should rethink hudud plan, says Dr Mahathir – Bernama
    Kelantan should rethink hudud plan, says Dr Mahathir – Bernama

    The Kelantan government should rethink its plan to implement hudud in the state, as the basic principle that must be emphasised is justice, said former prime minister Tun Dr Mahathir Mohamad (pic). He said this was because the Kelantan government was seen as stressing more on the forms of punishment in its attempt to implement the Islamic... …

  • New phase, not abandonment of MH370 search, says Hishammuddin
    New phase, not abandonment of MH370 search, says Hishammuddin

    KUALA LUMPUR, April 17 — Searchers may be forced to adjust their hunt for Flight MH370 after fruitless forays underwater, Datuk Seri Hishammuddin Hussein said today while renewing vows to keep... …

  • Selangor MB: No need to say if consulted state economic adviser
    Selangor MB: No need to say if consulted state economic adviser

    SHAH ALAM, April 17 — Selangor Mentri Besar Tan Sri Khalid Ibrahim today said he was not obliged to declare if he consults state economic adviser Datuk Seri Anwar Ibrahim on key decisions. While... …

KUALA LUMPUR (MAR 19): RHB Research Institute Sdn Bhd has maintained its Neutral rating on YTL Power International Bhd and lowered its target price for the stock to RM1.50 from RM1.52 on the back of potential headwinds that YTL’s Singapore operations may face and the continued losses at WiMAX division.

In a note Tuesday, the research house however increased its estimates for YTL Power for the financial years 2014 and 2015 by 0.3% and 4.0% to RM1.12 billion and RM1.21 billon respectively.

After a recent meeting with YTL Power’s management, RHB Research said that the management of YTL Power conceded that its Power Seraya operation would likely see more pricing competition in the medium term.

RHB Research said as Singapore’s local authorities are targeting an additional 3,000 MW in generation capacity by 2017, tariff pricing may “remain stagnant and even face some downside risks in the near term.”

YTL Power’s unit, WiMAX registered pre-tax losses of RM137.7 million in first half of financial year 2013.

However, the research house expects that the division to break even at the earnings before interest, taxes, depreciation and amortisation level by end of 2015.

Meanwhile, YTL is looking to participate in the upcoming tender for project 3B called for by the Energy Commission.

The project that comprises a greenfield coal-fired power plant with 2 times 1,000 MW capacity will present an opportunity for the group to potentially replenish its independent power producer earnings base, said RHB Research.

“We believe YTL Power might have to put in a competitive bid to bag the project,” said the research house.

The request for quotation evaluation results is expected to be announced by early April.

 

 

Follow @YahooMalaysia on LINE for daily news updates.

Comments on Yahoo pages are subject to our link to Comments Guidelines. You are responsible for any content that you post. Yahoo is not responsible or liable in any way for comments posted by its users. Yahoo does not in any way endorse or support comments made by its users.

  • ‘Huge’ Hindu, Buddhist statues against Islam, ex-judge says The Malay Mail Online
    ‘Huge’ Hindu, Buddhist statues against Islam, ex-judge says

    KUALA LUMPUR, April 16 — The “huge” statues at a Hindu temple in Batu Caves and Buddhist temple in Penang are an affront to Islam as the religion forbids idolatry, a retired Court of Appeals judge... …

  • My dad was in KL to see me, says Gobind The Malaysian Insider
    My dad was in KL to see me, says Gobind

    Bukit Gelugor MP Karpal Singh, who died in an accident early this morning, was in Kuala Lumpur to visit his son Gobind Singh Deo who was ill. A distraught Gobind said he was informed of the accident at 2.15am today, and he and his wife rushed to the scene where he saw his father's mangled car and his father's body. "My brother Ramkarpal was... …

  • Langkawi BN MP pokes fun at Karpal Singh’s remains The Malaysian Insider
    Langkawi BN MP pokes fun at Karpal Singh’s remains

    As the nation mourns the passing of a great politician, BN MP Datuk Nawawi Ahmad insulted the late Karpal Singh by posting a picture of the veteran politician's blood-smeared face as he lay in his Toyota Alphard following a tragic accident this morning. Along with the Facebook picture was a newspaper cutting on Karpal being opposed to the... …