KUALA LUMPUR (Feb 27): YTL Corp Bhd reported a 21% decline in net profit for the first half ended December 2025 (1HFY2026), mainly impacted by weaker electricity selling prices and the completion of a major construction contract.
The group posted net earnings of RM784.51 million, equivalent to 6.8 sen per share, compared with RM913.72 million or 8.29 sen per share a year earlier. Revenue for the six-month period slipped 3.82% to RM15.23 billion from RM15.83 billion previously.
For investors tracking large-cap infrastructure and property-linked counters in Malaysia — particularly those with exposure to commercial property in KL and industrial land in Selangor — the results reflect shifting sector dynamics rather than broad-based weakness across all divisions.
In the second quarter ended December 2025 (2QFY2026), net profit fell 24.48% year-on-year but rose 26.42% compared to the preceding quarter to RM438.03 million.
Quarterly revenue eased 5.86% year-on-year and 0.72% quarter-on-quarter to RM7.59 billion, indicating stabilisation momentum despite ongoing pricing pressures in the energy segment.
The weaker power performance was evident at its 52.46%-owned subsidiary, YTL Power International Bhd, where second-quarter net profit declined 43.13% to RM436.56 million, even though revenue fell a more moderate 7.51% to RM5.25 billion.
For the half year, YTL Power’s net profit dropped 24.32% year-on-year to RM937.13 million, slipping below the RM1 billion mark, while revenue contracted 6.6% to RM10.61 billion. No dividend was declared for the quarter.
The performance underscores the sensitivity of utility players to pricing adjustments and regulatory frameworks — factors that indirectly influence broader industrial activity, including demand for industrial property in Subang area and logistics-focused industrial land in Selangor.
In contrast, its 59.25%-indirect-owned unit, Malayan Cement Bhd, delivered solid growth.
Second-quarter net profit rose 26.15% to RM232.98 million on revenue of RM1.26 billion, which increased 9.46% year-on-year.
For the half year, Malayan Cement’s net profit climbed 33.76% to RM433.55 million, outpacing revenue growth of 6.63% to RM2.48 billion. The company declared a six sen dividend per share, higher than the five sen paid a year ago.
Sustained strength in the cement segment suggests continued construction activity, which supports development pipelines across commercial property in KL, factory developments in Puchong, and mixed-use townships in growth corridors around Bukit Jalil and Greater Klang Valley.
Looking ahead, YTL highlighted several ongoing initiatives, including:
Construction of a 600MW gas and hydrogen-ready power plant in Pulau Seraya
The first phase of a 500MW solar farm designed to co-power a 600MW data centre park
These projects align with Malaysia’s broader energy transition and digital infrastructure expansion. Data centre growth, in particular, has been a key catalyst for demand in industrial land in Selangor and high-specification facilities near Subang area and Cyberjaya.
In the water segment, the group expects clarity in March 2026 regarding the UK regulator’s final determination on allowed costs, following favourable provisional findings in October.
Meanwhile, management anticipates stable conditions in the hospitality sector and resilient demand in cement.
The group also indicated that it is proactively replenishing its construction order book amid competitive market conditions, ensuring project continuity and pipeline visibility.
Ahead of the results announcement, YTL shares slipped four sen, or 2.04%, to RM1.92, valuing the group at RM22.4 billion. The stock has declined 5.88% year-to-date.
Shares of YTL Power fell 7.03% to RM2.91 — their lowest level in 10 months — giving it a market capitalisation of RM25.3 billion.
Meanwhile, Malayan Cement gained eight sen to RM8.54, hovering near a decade high, with a market capitalisation of RM11.87 billion.
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