PETALING JAYA: Driven by news of a group restructuring, shares in YTL Corp Bhd and YTL Power International Bhd were actively traded yesterday while those of YTL Land and Development Bhd chalked up impressive gains.
YTL Land jumped 19 sen or 17.92% to close at RM1.25 yesterday. Since reaching its 52-week low of 76.5 sen on Sept 26, the stock has amassed a gain of 63.4%.
Its parent YTL Corp, meanwhile, rose 4.03% yesterday to RM1.55, up 21.09% from the low of RM1.28 on Aug 9. The stock was actively traded with 10.3 million shares traded.
YTL Power, which also saw heavy volume with 13.8 million shares transacted yesterday, rose 2.72% to RM1.89. The stock had gained 15.24% from its 52-week low of RM1.64 on Oct 14.
The benchmark FTSE Bursa Malaysia KLCI increased by 1.59% to close at 1,465.35 yesterday, in line with the broadly higher closing of other indices in the region.
The Edge weekly reported that YTL group has hired local investment bankers to work on a possible corporate restructuring exercise. It was speculated that the exercise could involve YTL privatising one or two of its listed subsidiaries in order to enhance value at the holding company level.
Analysts said YTL Corp is trading at 1.34 times book value, much lower than YTL Power’s 1.6 and YTL Land’s 1.83 times.
Both YTL Power and YTL Land offer different value enhancing propositions to YTL Corp, according to a market observer.
YTL Power is seen as a cash cow, with recurring earnings before interest, tax, depreciation and amortisation of RM3 billion and annual free cash flow of RM1.2 billion to RM1.3 billion a year, whereas YTL Land has several strategically located plots of land in Malaysia and Singapore.
This article appeared in The Edge Financial Daily, October 18, 2011.
YTL Land jumped 19 sen or 17.92% to close at RM1.25 yesterday. Since reaching its 52-week low of 76.5 sen on Sept 26, the stock has amassed a gain of 63.4%.
Its parent YTL Corp, meanwhile, rose 4.03% yesterday to RM1.55, up 21.09% from the low of RM1.28 on Aug 9. The stock was actively traded with 10.3 million shares traded.
YTL Power, which also saw heavy volume with 13.8 million shares transacted yesterday, rose 2.72% to RM1.89. The stock had gained 15.24% from its 52-week low of RM1.64 on Oct 14.
The benchmark FTSE Bursa Malaysia KLCI increased by 1.59% to close at 1,465.35 yesterday, in line with the broadly higher closing of other indices in the region.
The Edge weekly reported that YTL group has hired local investment bankers to work on a possible corporate restructuring exercise. It was speculated that the exercise could involve YTL privatising one or two of its listed subsidiaries in order to enhance value at the holding company level.
Analysts said YTL Corp is trading at 1.34 times book value, much lower than YTL Power’s 1.6 and YTL Land’s 1.83 times.
Both YTL Power and YTL Land offer different value enhancing propositions to YTL Corp, according to a market observer.
YTL Power is seen as a cash cow, with recurring earnings before interest, tax, depreciation and amortisation of RM3 billion and annual free cash flow of RM1.2 billion to RM1.3 billion a year, whereas YTL Land has several strategically located plots of land in Malaysia and Singapore.
This article appeared in The Edge Financial Daily, October 18, 2011.
