YTLPOWR (6742) ~ Drop to Near 1 Yr Low ~

Current Price @ 1.58

Why drop? Maybe because losing the bid for Prai combined-cycle gas turbine power project for a capacity of 1,000 to 1,400 megawatts. The bid won by Tenaga Nasional Bhd.

Some risk:

• Government bodies are moving into this field
• Genting sold Genting Sanyen (Malaysia) Sdn Bhd to 1Malaysia Development Bhd. After sold, it get 10 years extension.
• Segari Energy Ventures Sdn Bhd (a subsidiary of Malakoff) also get 10 years extension.
• Also Tenaga Nasional Bhd won the bid for the Prai.

What to look at next?

• Who will get the remaining 3,100MW which is up for bidding at a later stage?
• Governtment bodies or Billionaires?
• Will YTLPOWR sell those two gas-fired combined cycle power plants like Genting?

Although there are some risks associated with its power business, I still believe these are minor to YTLPOWR and it is worth to consider at current price.

Main reason is that YTLPOWR continuously expand their business oversea and currently have business in:

• Singapore
• Indonesia
• Australia
• UK

Besides, they have also started moving into 4G business in Malaysia.

Below are some updated info for YTLPOWR:

• Net asset per share increased to 1.30 (previously 1.18)
• Dividend approx. 3% ~ similar to Banks FD interest rate
• EPF hold approx. 9.41% (previously approx. 9.92% in Sept 2011 drop to 9.25% in Feb 2012) ~ EPF believe YTLPOWR is at discounted price??

 Good luck with your investment!!! ^_*

If you are not risk taker, you should consider put it in the bank for FD and get around 3% interest per annum

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• YTLPOWR (6742) ~ Back to Similar Price
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