Malaysia Utilities: 13GW DC pipeline 60% above signed capacity; assuming coverage with OW on YTLP and TNB

Research evidence excerpt

J P M O R G A N

Asia Pacific Equity Research

11 August 2026

Malaysia Utilities

13GW DC pipeline 60% above signed capacity;

assuming coverage with OW on YTLP and TNB

We assume coverage of YTL Power (YTLP; OW, SOTP PT RM6.20)/Tenaga

(TNB; OW, SOTP PT RM18.00), with 30%/26% potential upside. We see a

structural, multi-year electricity demand cycle running through 2030, driven by

our proprietary 13GW DC tracker, which sits ~60% above TNB’s 8.3GW of signed

electricity supply agreements (ESA) – a longer runway than the market is pricing.

Three drivers underpin our view: (1) Malaysia’s DC electricity demand rising from

~6% to 20-25% of nationwide consumption by 2030E; (2) sustained growth in

TNB’s regulated asset base (RAB), with RM42bn of RP5 capex (vs. RM36bn in

RP4, JPMe); and (3) YTLP’s DC capacity rising from 148MW to 498MW, lifting

DC to 43% of group PBT by FY28E. Our preference order is YTLP > TNB.

Malaysia Research

(60-3) 2718 0901

JPMorgan Securities (Malaysia) Sdn. Bhd. (18146X)

Samuel Tan AC

(60-3) 2718 0781

Nigel Ng

(60-3) 2718 0962

Yen Voo, CFA, CA

(60-3) 2718 0914

Khai Seang Lee

YTLP – mispriced DC optionality. Our FY27E/28E earnings sit 10%/30%

above Bloomberg consensus on a 77% DC revenue CAGR (FY26E-30E), with

DC alone at 60% of our FY28E SOTP valuation. Its 1,640-acre Johor site scales

from 148MW today to 1,200MW – Malaysia’s second-largest DC pipeline

after Google’s self-build. YTLP also builds more cheaply (US$6.7m/MW) and

runs more efficiently (1.28 PUE vs. ASEAN ~1.55), letting it charge the upper

Johor range (US$80-120/kW/month), still ~60% below Singapore. Elsewhere,

Wessex Water exits its earnings trough into the AMP8 cycle (£3.5bn capex,

4.20% allowed return), while PowerSeraya normalizes at RM1.4bn-1.8bn

PBT by FY27E/28E as a ~600MW hydrogen-ready plant arrives. We expect a

soft FY4Q26 after a PowerSeraya outage, but see it as largely anticipated.

Concerns over the 600MW grid-connection cap are overstated, in our view, as

we model only 498MW by FY28, leaving ~2 years’ headroom to commission

a second CLS toward the 1,200MW target. Upside risk includes a potential

separate listing of the colocation DC business above 18x EV/EBITDA.

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