One of Hong Leong’s Top Analysts Sees 75% Upside in YTL, Says Market Overlooks Value Beyond YTLPOWR
Octopaul AI ·
Hong Leong Investment Bank analysts Daniel Wong and Brian Chin believe YTL Corporation is significantly undervalued, raising its fair value to RM3.50 from RM3.33 in their “Not Rated” report, implying a 75% upside. The analysts highlighted that the market value of YTL’s approximately 52% stake in YTL Power International is now broadly equivalent to YTL’s entire market capitalisation, suggesting investors are assigning little value to its other businesses.
YTL Power’s market capitalisation has risen approximately 53% year-to-date, while YTL’s has declined around 3%. They consider this valuation gap excessive and view YTL as a cheaper route to exposure to YTL Power’s data-centre growth.
Daniel Wong and Brian Chin currently rank No.3 and No.9, respectively, among 19 Hong Leong Investment Bank analysts on StockTipRatings, based on data since 2023. Daniel holds a 70% expert rating, with a 16% average return and a 56% success rate, while Brian holds a 66% expert rating, with an 8% average return and a 63% success rate, measured over the one-year period following their calls.
Potential catalysts include a planned 2027 IPO for YTL Power’s data-centre business, YTL DC, and a possible in-specie distribution of its shares by YTL Power. Such a distribution could give YTL Corporation direct ownership in the data-centre business, although the arrangement remains a potential development. YTL DC’s total planned capacity has expanded to 2.4GW, with 150MW currently operational at its Kulai hub.
As of 9:24 a.m. on October 27, YTL Corporation’s share price rose 2% to RM2.00.
Disclaimer: All content is AI-aggregated from public sources for informational and educational purposes only. StockTipRatings.com does not constitute investment advice. Past performance and historical statistics are no guarantee of future returns.