YTL Power International (YTLP MK) (Neutral) - Weak quarter dragged by power prompts EPS cut

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YTL Power International (YTLP MK) (Neutral) - Weak quarter dragged by power prompts EPS cut

Global Markets Research

YTL Power International YTLP.KL YTLP MK 29 May 2026

EQUITY: POWER & UTILITIES

RatingWeak quarter dragged by power prompts EPS cut Remains Neutral

Target priceMore transparency in data a positive, although we think Reduced from MYR 4.35the stock remains fairly valued at current levels MYR 4.47

3QFY26 review: Power continues to drag; more disclosures on segment numbers Closing28 May 2026price MYR 4.15

YTLP (YTL Power) delivered a core net profit of MYR366mn (-42% q-q; -41% y-y),

bringing its 9M26 core net profit to MYR1.58bn (-24% y-y) to account for 68% of Implied upside +4.8%

consensus FY26F estimates, which we deem a miss. The weaker set of numbers were

mainly dragged by the Power segment, which saw its PBT declining by 40% q-q on the Market Cap (USD mn) 9,085.6

back of higher fuel costs. For this quarter, management has started to disclose exact ADT (USD mn) 12.0

breakdowns for Wessex Water (unlisted) and Ranhill (RHH MK, Not rated), as well as its

data center (DC) segment, which we view as a positive move for better transparency. Its Relative performance chart

co-location DC business generated revenues of MYR224.6mn in 3Q26 on an active

capacity of 150MW (vs 2Q26: MYR127mn on 110MW), with PBT for the segment

churning in MYR59.3mn. This brought its 9MFY26 PBT from DC at MYR101mn, to

account for 5% of 9MFY26 core PBT. We do note that interest expense incurred during

9MFY26 amounted to MYR42mn on its MYR2.2bn borrowings. We gather from

managment that MYR8.1bn of capex has been incurred in total for data center operations,

of which most of the funding came from the holding company level, and this will