Strong MCement, YTL Power performance lift YTL Corp 2Q profit six-fold to RM589 mil

• Aside from YTL Power and MCement, YTL Corp has exposure to the hotels segment through YTL Hospitality REIT, where it holds a 55% direct and a 3.63% indirect stake. It also undertakes property investment and development, and management services.

KUALA LUMPUR (Feb 22): YTL Corp Bhd net profit in the second quarter ended Dec 31, 2023 (2QFY2024) rose six-fold to RM589.21 million from RM96.91 million a year ago, lifted by stellar results from listed units YTL Power International Bhd and Malayan Cement Bhd.

Quarterly earnings per share rose to 5.37 sen from 0.88 sen, according to its filing.

Revenue for the quarter rose by 14.2% to RM7.53 billion, up from RM6.59 billion.

The conglomerate's two biggest contributors were utilities through YTL Power, in which it has a 49.08% direct and a 6.49% indirect stake, and cement and building materials through its 78.58% indirect-owned MCement.

Its cement segment experienced higher volumes and stabilization in selling prices, moderating the impact of higher energy costs recorded by all divisions, according to YTL Corp.

Meanwhile, for the utilities segment, YTL Corp stated that the power generation division recorded better margins and the strengthening of the Singapore dollar against the ringgit.

For the six-month period (1HFY2024), YTL Corp's net profit jumped eight-fold to RM1.1 billion from RM133.53 million in 1HFY2023, while revenue rose by 15% to RM15.1 billion from RM13.1 billion in the same period.

Regarding its biggest contributor, YTL Power, net profit rose over four-fold to RM845.12 million or 10.43 sen per share, from RM198.82 million or 2.45 sen per share, while revenue rose by 14.3% to RM5.37 billion from RM4.7 billion.

For the cumulative six-month period, its net profit expanded over four-fold to RM1.69 billion from RM372.1 million in 1HFY2023, as revenue rose by 14.5% to RM1.08 billion from RM944.7 million in the same period.

Malayan Cement separately posted a strong net profit of RM121.2 million or 9.25 sen per share – its best quarterly performance since 2013 – from RM15.26 million or 1.16 sen per share a year ago, on revenue increase of 29% to RM1.16 billion, from RM896.97 million.

Year to date, its net profit jumped over 13-fold to RM217.28 million from RM16.21 million in 1HFY2023, as revenue jumped 31.4% to RM2.31 billion from RM1.76 billion in the same period.

Aside from YTL Power and MCement, YTL Corp has exposure to the hotels segment through YTL Hospitality REIT, where it holds a 55% direct and a 3.63% indirect stake. It also undertakes property investment and development, and management services.

Overall, all operating segments saw improvements in 1HFY2024, except for construction.

On its prospects, YTL Corp said it remains optimistic about the growth in cement demand, primarily driven by civil and non-residential ventures, including infrastructure, logistics facilities, data centers, and factories.

"Cement demand is expected to be further bolstered by Malaysia's long-term need for housing and infrastructure due to its young population and high urbanization rate," it added.

The power segment is also working towards the development of its 500MW solar park in Kulai, Johor.

The Yeoh family owns 50.2% of YTL Corp through Yeoh Tiong Lay & Sons Holdings Sdn Bhd.

Shares of YTL Corp slipped by seven sen or 3.15% to RM2.15, resulting in a market capitalization of RM23.7 billion. Meanwhile, YTL Power shares closed 12 sen or 3.08% lower at RM3.78, with a market capitalization of RM30.83 billion.

For Malayan Cement, the counter closed down seven sen or 1.43% at RM4.83, giving it a market capitalization of RM6.33 billion.

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