Thursday, November 11, 2010

AmResearch places YTL Power under review

KUALA LUMPUR: AmResearch is placing YTL POWER INTERNATIONAL BHD [] (YTLP) UNDER REVIEW pending greater clarity on the response to its WiMax service.

The research house said on Thursday, Nov 11 the stock currently trades at a fully diluted CY11F PE of 18 times -- above its three-year diluted PE band of 10 times to 16 times.

'It is still offering a decent dividend yield of 5%, which we understand is unlikely to be adversely affected by the RM2.5 billion WiMax capital expenditure programme,' it said.

YTL Power's 60%-owned YTL Communications Sdn Bhd has acquired a 90% stake in Extiva Communications Sdn Bhd from YTL E-SOLUTIONS BHD [] for RM18 million cash.

AmResearch said given the relatively small value, this will have an insignificant impact on YTL Power's FY11F-FY13F earnings.


No comments:

Post a Comment