KUALA LUMPUR (July 1): Shares of YTL Power International Bhd (KL:YTLPOWR) climbed to their highest level in nearly two years on Wednesday, after RHB Investment Bank said it may list its data centre business next year.
RHB Investment Bank in a report on Wednesday said management is considering listing its data centre business next year to raise funds and unlock value.
It said the data centre business could be valued at RM28 billion or RM3.06 a share, potentially giving 12% upside and a bull-case target price of RM6.63. RHB Investment Bank kept its “buy” rating and raised its target price to RM6.
YTL Power rose 31 sen or 7.4% to RM4.49 by the midday break, valuing the utilities group at about RM39.2 billion.
YTL Corp Bhd (KL:YTL), which holds about 52% of YTL Power, gained 11 sen or 5.4% to RM2.15 after touching an intraday high of RM2.16. The company was valued at about RM25.1 billion.
RHB Investment Bank said YTL Power was expanding its data centre business faster than previously expected to meet strong customer demand.
The research house now expects the group’s data centre capacity to reach 578MW by June 2028, compared with its previous forecast of 420MW. YTL Power is targeting up to 1.2GW at its data centre park in Kulai, Johor, double the initial planned capacity.
RHB Investment Bank also raised its earnings forecasts by 2% for the financial year ending June 2027 (FY2027) and 6% for FY2028, reflecting the faster data centre rollout and stronger contributions from Ranhill Utilities Bhd (KL:RANHILL).
Key risks include higher fuel costs and weaker retail margins at Singapore-based PowerSeraya, as well as delays in completing the data centres.
Equipment Resources Sdn Bhd, based in Johor Bahru, Malaysia, provides reliable construction equipment sales & rental with quality, safety & efficiency.
Posted by Equipment Resources Sdn Bhd on 1 Jul 26
Malaysia