From AR 30June2023, investment in subsidiary, quoted shares, at cost RM3.47 bil. The market value is RM6.06 bil and this mv will increased tremendously, in the AR 30June2024, when the mv of YTLP is taken into account. Reported at cost in the Balance Sheet. This investment in the subsidiaries is like the treasure kept in the safe.
Sharing some new on recent takeover of MAHB....."Kenanga said the offer price of RM11 a share translates to 26x and 20x of its FY25 forecast earnings per share (EPS) and FY25 consensus EPS respectively. This implies a discount of 26%-42% compared to closest listed peer Airport of Thailand, which trades at 35x consensus FY25F EPS." Amazing how airport operators are looking at 25-35 PER, while YTL at currently about 20x PER is already considered high :-) peace
YTL owned 55% of the issued shared of YLTP, @4.5Bil units X RM5 = RM27Bil only.
The investment in the subsidiary, in the AR 30June2023, recorded as RM3.74 as the cost for the quoted shares (likely the shares of YLTP). The gains are more than RM23 Bil but have to be reported in the Notes at the Balance Sheet (30Jun2024).
In addition to the revenue from YTP's ongoing operations, these gain from appreciation of YTLP's quoted shares will make YTL's share value become higher and higher.
The NTA for each of YTL's share will have to added with that RM23 Bil as to be shared equally. Then the actual NTA for each share will be prevailed.
The investment in the subsidiary is recorded as at cost. The initial accounting entries can be just as follows:-
DR : Investment in Subsidiary RM3.74 Bil CR : Bank -Malayan Banking Berhad RM3.74 Bil
Since then, no further accounting entry was passed. That RM23 Bil will only be taken in the Profit/Loss Account upon disposal but the shareholders owned it.
Each increment of 1 sen in YTLP will add RM45,000,000 to the value of its investment in this subsidiary (YTLP).
@beinvested ..... while all these accounting entries are being addressed, I hope everyone knows that it has little to nothing to do with the share price, as the share price is based on more on earnings and the earnings of ytlp have already been equity accounted in the books of ytl..... therefore all these accounting entries and just accounting entries that all.... :-) peace
Raymond, YTL's share price should based on its business performance and with the investment in YTLP based on the current mv. The paper gains are so much but no reflected in the Balance Sheet but only at the cost. YTL will earn from YTLP if there's dividend being received into the bank account.
YTL got 11 Bil issued shares and got 4.5 Bil of YLTP shares (55% controlling stake), mean each share in YTL is entitled for 0.4 unit of share in YTLP, already got value at RM2 (0.4 x RM5).
Over valued over valued over valued Over valued over valued over valued Over valued over valued over valued Over valued over valued over valued Over valued over valued over valued Over valued over valued over valued So called by some people since 1.40. I love my profit peace
It is a nonsense for certain parties to claim YTL is over-valued at current prices.
Based on annualised earnings of 20 sen for FY2024, YTL is trading at less than 19x PER. Earnings are expected to rise rapidly from YTLPower's AI data centre & Wessex, as well as Mcement and hotel business.
I forecast EPS may rise easily to 25 sen by FY2026, based on the projection from Macquarie on YTL Power earnings hitting over RM4.2 billion in FY2026.
Based on same 20x PER, YTL share price should rise gradually to RM5.00 by 2026.
YTLP was preferred because it has utilities companies and power generation companies in overseas. It has the export markets and the advantages of the income from foreign currencies.
Checked to the AR30Jun2022, Notes No. 15, the investment in subsidiaries under quoted shares which likely pointing to the holdings of YTLP by YTL is costing at RM3.47 BiL only. Come AR30Jun2024, this figure will be increased plentifully. This factor will improve the mv of YTL in addition to the dividends received and the daily businesses.
Then, the market value then was reported as RM3.609 Bil only since the appreciation was not much. Using RM5.30 a share, the mv will be RM23.8 Bil only (4.5Bil units X RM5.30). Each YTL share is entitled for 0.4 unit of share in YTLP ().4 X RM5.30 = RM2.12).
@beinvested ..... yes u are right in the part that if ytlp issues a handsome dividend, then ytl will gain in incremental income, an dthis will push the valuation higher thus strengthen share price, we are i would say in a bull run in bursa, almost any shares u touch is up .... im looking at hume, funny as it makes almost same EPS as ytlp at 9.76c last quarter and trading at just below 10x EPS... shd i divest some ytl to hume? hmmm.... peace
i am tagetting RM 6, sell 1/3, rm 8 sell another 1/3, rm 10 sell 1/3...then wait next round... YTL is the baby for new gorment i think, new gorment like them...i think can hit RM 10...before collapsing...it will become biggest in BURSA...overtaking Maybank CIMB all those, and top the malaysia listed companies...
Disclaimer: not a buy call or sell call, invest on own rist
i have hope that Francise can top the Malaysia FORBE list with ytl hitting rm 6...riches in Malaysia, and buggest company, overtaking Maybank...it is baby for newgorment.
Thanks, Dragon328, for all the Blogs & superb analysis! This stock is an excellent investment opportunity, supported by a wealth of FREE FREE FREE data and reports available for our review. Making informed decisions to buy or sell is all about utilizing these resources effectively. A big thanks to all the genuine experts out there!
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Leward88
119 posts
Posted by Leward88 > 2 days ago | Report Abuse
Expect YTL will make more than RM8 billion in revenue 😃