Raising Power Seraya earnings on lower oil price: Reiterate Neutral; potential data centre IPO is likely priced in

研报英文原文证据摘录

Raising Power Seraya earnings on lower oil price: Reiterate Neutral; potential data centre IPO is likely priced in

Global Markets Research

YTL Power International YTLP.KL YTLP MK 6 July 2026

EQUITY: POWER & UTILITIES

RatingRaising Power Seraya earnings on lower oil price Remains Neutral

Target priceReiterate Neutral; potential data centre IPO is likely Increased from MYR 4.43priced in MYR 4.35

Raising EPS by 14%/ 4% for FY27F/28F driven by Power Seraya on lower oil price Closing6 July 2026price MYR 4.34

We raise our earnings for Power Seraya (unlisted; 100% holding) on the back of lower oil price

(from USD80/bbl to USD70/bbl on brent crude; Fig.2) as the de-escalation of the Gulf war could Implied upside +2.1%

materialize. We now expect Power Seraya to record strong earnings into FY27F at MYR1.626bn,

although it recorded lower-than-peak earnings of MYR3.06bn in FY24. This, we believe, will Market Cap (USD mn) 9,271.5

enable YTL Power to record stronger earnings into FY27F to MYR2.34bn vs. our earlier estimate ADT (USD mn) 13.5

of MYR2.06bn and our FY26F earnings of MYR1.75bn. We also expect YTL's co-location data

centre (DC) business to record increased earnings contribution to MYR208.8mn (from FY26F Relative performance chart

estimate of MYR143.5mn, vs 9MFY26 PBT of MYR101mn), with FY27F EBITDA rising to

MYR722mn owing to higher operational capacity. We expect active loads to grow to 288 MW by

end-FY27F vs our earlier estimate of 178 MW by end-FY25F. The AI cloud DC business is also

likely to record its maiden profit in FY27F and contribute MYR88.1mn in the year. Hence, we

believe the contributions from both the DC businesses should account for 12.7% of YTL Power's

FY27F earnings base. However, we expect FY28F earnings to be lower for co-location DC in