In The Edge Financial Daily Today 2012
Written by Nadia S Hassan
Wednesday, 07 March 2012 11:37
KUALA LUMPUR: YTL Communications Sdn Bhd is targeting to grow its postpaid subscriber base to half a million by end-2012 according to its CEO Wing K Lee.
“We are aiming for our total subscriber base to be over one million by the end of the year. However, we will have to see how the rest of the year goes,” said Wing after the launch of YTL Comms YES 4G wireless Unlimited Super Postpaid plans yesterday.
YTL Comms comes under the umbrella of listed entity YTL Power International Bhd. YTL Power chairman Tan Sri Francis Yeoh Sock Ping had been quoted as telling shareholders in 2011 that he expected YTL Comms to break even when its subscriber base reaches one million.
As such, if YTL Comms manages to achieve one million subscribers by the year-end, it means that the company could be profit generating.
Yeoh had also said at the time that he expected YTL Comms to turn around within two years. YTL Comms is currently loss-making, according to YTL Power’s latest 4Q results. For the financial period ended Dec 31, YTL Comms recorded a net loss of RM197 million while its top line stood at RM30.6 million. For the previous corresponding period, revenue had stood at RM4.7 million, while net losses had been RM27.7 million.
YTL Comms has gained a subscriber base of over 300,000 in the 15 months since YES was launched, according to Wing.
Earlier, YTL Comms had announced a target of 400,000 subscribers by the end of 2011.
However, according to the company, while the initial pickup was slow, YES is starting to gain traction on the back of new packages and offerings.
“We have also managed to almost double our number of base stations during the past 15 months.
“We initially had around 1,200 base stations that gave us around 60% population coverage. Now the number has grown to 2,200, which gives us around 70% coverage of the population,” Wing said.
According to YTL Comms deputy CEO Jacob Yeoh, the company is aiming to expand its coverage to 80% of the population by the end of 2012.
“We are hoping to have around 4,000 base stations by the end of the year, which will help expand our coverage by an additional 10 percentage points.
We had also earlier said we were planning to spend around RM2.5 billion in capital expenditure to meet this target,” he said.
YTL Comms is also targeting the education sector, having already signed up 10 local universities to offer its YES wireless service.
“It goes beyond simple marketing, what we are aiming for is making fundamental changes in the industry. We are also looking to add more universities as our partners, going forward,” said Wing.
He added that YTL Comms is also looking at possibly expanding the coverage of YES to include Sabah and Sarawak.
“We are in talks with the Malaysian Communications and Multimedia Commission (MCMC) concerning our expansion into east Malaysia. We will announce it when there is an update,” said Wing.
This article appeared in The Edge Financial Daily, March 7, 2012.
Showing posts with label YTLPowr. Show all posts
Showing posts with label YTLPowr. Show all posts
Wednesday, March 14, 2012
1Bestarinet to kick off soon
In The Edge Financial Daily Today 2012
Written by Nadia S Hassan
Tuesday, 13 March 2012 11:44
Written by Nadia S Hassan
Tuesday, 13 March 2012 11:44
KUALA LUMPUR: The government’s 1Bestarinet project is in the process of being implemented by YTL Communications Sdn Bhd (YTL Comms), a unit of YTL Power International Bhd.
Although no official announcement had been made by the government on the project award, sources said YTL Comms has already rolled out the service to a number of schools in the Klang Valley, having started
doing so from December last year.
When contacted, a YTL Comms spokesman said: “The project was awarded based on an open tender submission made to the Ministry of Education and, whilst we appreciate the opportunity to respond, we are bound by the tender guidelines on confidentiality.”
When asked about 1Bestarinet at a recent event, YTL Comms CEO Wing K Lee declined to comment on the matter, only saying that: “We are supportive of this project by the government, and believe that it is good for the people.”
It is learned that there are around 400 schools in Selangor that are due for implementation in the coming months. The focus of the reportedly RM1.5 billion project is to provide Internet access and a virtual learning platform to 9,924 schools across the country.
“There had been question marks over the status of the project. However, it appears that YTL Comms is picking up the pace to meet the government’s goal to complete 1Bestarinet and have it available to all the schools by 2012,” said an industry observer.
The project involves the provision of both Internet access and a virtual learning environment (VLE). The tenure of the contract could be up to 15 years and would include the management of the VLE. The schools would be provided equipment and 4G dongles, while Internet access would be required to carry out the VLE.
The government announced the tender last May as part of its efforts to wire up the country’s schools.
It had been reported that six companies — Celcom Axiata Bhd, Jaring Communications, Maxis Bhd, Multimedia Synergy Corp, the team of Telekom Malaysia Bhd and Time dotCom Bhd, and YTL Comms — had submitted bids.
Then last October, YTL Comms appeared as the winner of the project, according to a posting on the Ministry of Education’s website. However, the announcement was then taken down a few hours later, according to reports.
News that YTL Comms had been awarded the contract by the government had caused a ripple in the industry. Critics questioned the award of the project, citing vague tender guidelines and YTL Corp’s lack of a track record as a service provider relative to more established industry peers that also submitted bids.
Since then, there has still been no official word on who has gotten the project, although the work has been going on for the past three months.
Regardless, this project would give a boost to YTL Comms, which is aggressively rolling out its Yes 4G WiMAX service. The company launched the service in November 2010 with great fanfare, catching the attention of the industry when YTL announced its partnership with US-based Sezmi Corp. The partnership would allow YTL the rights to deploy a hybrid TV service not just in Malaysia but also in the Asia-Pacific. YTL Comms is also reportedly among winners for the 4G/LTE spectrum, which is due to be rolled out commercially post-2013.
YTL Comms, however, is currently loss-making, according to YTL Power’s latest 4Q results. For the financial period ended Dec 31, YTL Comms recorded a net loss of RM197 million while its top line stood at RM30.6 million. For the previous corresponding period, revenue had stood at RM4.7 million, while net losses had been RM27.7 million.
YTL Power stated in its notes to the announcement: “The continuous growth in its subscriber base has resulted in an increase in the revenue of this segment. However, the losses were mainly attributable to the start-up and fixed operating cost incurred.”
There had also been talk that in order to grow its business, YTL was possibly looking to partner with other telcos. This, however, is not a new occurrence as most of the telcos have been exploring potential partnerships among themselves in order to fully utilise their spectrum and sweat their assets.
YTL, however, has yet to announce any partnership with another telco, but the spokesman is quick to point out that the company has been in discussions with other players.
“YTL Comms is constantly in talks with other players in the industry on a wide range of topics. These topics revolve around the progression of the wireless communications industry in Malaysia and how we can work together to develop strategies that benefit the consumers and the industry as a whole. This is not to say that we have specifically discussed consolidation with any party,” said the company spokesman.
This article appeared in The Edge Financial Daily, March 13, 2012.
Wednesday, November 30, 2011
Yeoh expects YTL Comms to turn around
Written by The Edge Financial Daily
Wednesday, 30 November 2011 15:11
KUALA LUMPUR: YTL Power International Bhd expects its subsidiary YTL Communications Sdn Bhd to turn around within two years, managing director Tan Sri Francis Yeoh told shareholders at the company’s annual general meeting here yesterday.
A 60% subsidiary of YTL Power, YTL Communications launched its YES 4G wireless network in November last year.
“He [Yeoh] told shareholders to be patient and think that YTL Communications will turn around to become an aggressive and profitable company within two years,” said a shareholder at the AGM.
For its 1QFY12 ending Sept 30, YTL Power’s mobile broadband network division posted a loss before tax of RM94.94 million. For its FY11 ending June 30, the division posted a loss before tax of RM280.2 million on the back of RM26.6 million in revenue.
YTL Power’s net profit for FY11 increased by 11.3% to RM1.346 billion from RM1.209 billion a year ago, on the back of a 9.1% increase in revenue to RM14.663 billion from RM13.443 billion a year ago.
Yeoh said YES now has a subscriber base of over 3,000 and YTL Communications will break even when it has one million subscribers, according to the shareholder.
Yeoh told shareholders that YTL Communications will launch an Android smartphone together with an “easy to understand” price plan in January next year. The Android smartphone will be sold at half the price of an iPhone.
However, shareholders at the AGM were disappointed with YTL Power’s dividends for FY11.
YTL Power paid dividends amounting to 9.39 sen for FY11 compared with 13.13 sen for FY10, a reduction of about 29%.
“Francis [Yeoh] said the company paid less dividends compared to last year because it is preserving cash for a huge credit crunch which he [Yeoh] believes will happen in the coming year or two,” said the shareholder.
The shareholder said Yeoh believes this “huge and wild” financial turbulence will last for a year or two.
“Yeoh said he is preparing YTL Power for good growth after the ‘turbulence’ as there will be better opportunities if a company is in a good cash position,” added the shareholder.
As of end-September, YTL Power had cash reserves of RM8.155 billion against borrowings of RM15.644 billion.
This article appeared in The Edge Financial Daily, November 30, 2011.
Wednesday, 30 November 2011 15:11
KUALA LUMPUR: YTL Power International Bhd expects its subsidiary YTL Communications Sdn Bhd to turn around within two years, managing director Tan Sri Francis Yeoh told shareholders at the company’s annual general meeting here yesterday.
A 60% subsidiary of YTL Power, YTL Communications launched its YES 4G wireless network in November last year.
“He [Yeoh] told shareholders to be patient and think that YTL Communications will turn around to become an aggressive and profitable company within two years,” said a shareholder at the AGM.
For its 1QFY12 ending Sept 30, YTL Power’s mobile broadband network division posted a loss before tax of RM94.94 million. For its FY11 ending June 30, the division posted a loss before tax of RM280.2 million on the back of RM26.6 million in revenue.
YTL Power’s net profit for FY11 increased by 11.3% to RM1.346 billion from RM1.209 billion a year ago, on the back of a 9.1% increase in revenue to RM14.663 billion from RM13.443 billion a year ago.
Yeoh said YES now has a subscriber base of over 3,000 and YTL Communications will break even when it has one million subscribers, according to the shareholder.
Yeoh told shareholders that YTL Communications will launch an Android smartphone together with an “easy to understand” price plan in January next year. The Android smartphone will be sold at half the price of an iPhone.
However, shareholders at the AGM were disappointed with YTL Power’s dividends for FY11.
YTL Power paid dividends amounting to 9.39 sen for FY11 compared with 13.13 sen for FY10, a reduction of about 29%.
“Francis [Yeoh] said the company paid less dividends compared to last year because it is preserving cash for a huge credit crunch which he [Yeoh] believes will happen in the coming year or two,” said the shareholder.
The shareholder said Yeoh believes this “huge and wild” financial turbulence will last for a year or two.
“Yeoh said he is preparing YTL Power for good growth after the ‘turbulence’ as there will be better opportunities if a company is in a good cash position,” added the shareholder.
As of end-September, YTL Power had cash reserves of RM8.155 billion against borrowings of RM15.644 billion.
This article appeared in The Edge Financial Daily, November 30, 2011.
Wednesday, October 5, 2011
券商買進心頭好．新國經濟放緩衝擊 楊忠禮能源收益或僅跌5%
05/10/2011 22:53
券商：艾芬證券研究
目標價：2.45令吉
楊忠禮能源（YTLPOWR，6742，主要板基建）淨利表現或受到新加坡經濟放緩影響，但我們相信該公司2012至2013財年的收益預測下滑空間僅限于5%。
自2009年3月，該公司全面收購西拉雅能源公司（Power Seraya）100%股權以來，后者為楊忠禮能源貢獻顯著稅前盈利，2011財年達58%。
因此新加坡經濟轉弱，電力需求減少或影響該公司收益表現。
不過，觀察新加坡過去25年電力需求和經濟週期，該國電力需求增長率最糟糕的情況是停滯不前，未陷負增長。
回顧1998年亞洲金融風暴，電力需求按年增長6%；2001年911事件，電力需求按年增長2%；2009年信貸危機，製造業電力需求雖按年下滑12%，但被商業領域10%按年增長率抵銷。
而且，我們的預算屬保守且與經濟學家一致。
此外，西拉雅能源銷售額每改變1%，楊忠禮能源2012財年淨利將改變1400萬令吉或1.2%。截至目前，楊忠禮能源股價下滑了31%，意味著西拉雅能源的需求風險已被納入計算。
因此，我們維持該股“買入”評級。
至于剛推出的“Yes”4G流動網絡服務，雖進展順利，但也納入了2012財年6億3000萬令吉的稅前虧損。
閉市時，楊忠禮能源以每股1.65令吉掛收，起1仙，成交量達355萬9200股。
券商：艾芬證券研究
目標價：2.45令吉
楊忠禮能源（YTLPOWR，6742，主要板基建）淨利表現或受到新加坡經濟放緩影響，但我們相信該公司2012至2013財年的收益預測下滑空間僅限于5%。
自2009年3月，該公司全面收購西拉雅能源公司（Power Seraya）100%股權以來，后者為楊忠禮能源貢獻顯著稅前盈利，2011財年達58%。
因此新加坡經濟轉弱，電力需求減少或影響該公司收益表現。
不過，觀察新加坡過去25年電力需求和經濟週期，該國電力需求增長率最糟糕的情況是停滯不前，未陷負增長。
回顧1998年亞洲金融風暴，電力需求按年增長6%；2001年911事件，電力需求按年增長2%；2009年信貸危機，製造業電力需求雖按年下滑12%，但被商業領域10%按年增長率抵銷。
而且，我們的預算屬保守且與經濟學家一致。
此外，西拉雅能源銷售額每改變1%，楊忠禮能源2012財年淨利將改變1400萬令吉或1.2%。截至目前，楊忠禮能源股價下滑了31%，意味著西拉雅能源的需求風險已被納入計算。
因此，我們維持該股“買入”評級。
至于剛推出的“Yes”4G流動網絡服務，雖進展順利，但也納入了2012財年6億3000萬令吉的稅前虧損。
閉市時，楊忠禮能源以每股1.65令吉掛收，起1仙，成交量達355萬9200股。
Monday, October 3, 2011
YTL Communications wins best new service award
Monday October 3, 2011 MYT 2:15:00 PM
KUALA LUMPUR: YTL Communications Sdn Bhd, a global frontrunner in mobile 4G, won the "Best New Service" award at the recent Global 2011 InfoVision Awards ceremony.It bagged the award at the prestigious event, for its innovative Yes 4G service, Malaysia's fastest mobile internet with voice.
YTL Communications said in a statement today, with almost a year into its operations, the award comes as a clear acknowledgement that Malaysia is at the forefront of the world when it comes to the adoption of next-generation wireless technologies.
With the win, the company joins an elite list of operators from around the world, including British Telecoms, Australia's Telstra and Hong Kong's PCCW, who have received the same honour in the history of InfoVision Award.
YTL Communications chief executive officer Wing K Lee said: "The award is another validation of the vision and dedication that went hand-in-hand in the creation of Yes 4G and our drive to bring positive change to Malaysia."
Yes, a brand under YTL Communications, offer the fastest mobile internet with voice service, and the first mobile operator to bring mobile internet and voice together in one plan.
YTL Communication is a subsidiary and the communications utility of YTL Power International Bhd and part the YTL Corporation Bhd Group. - BERNAMA
Friday, August 26, 2011
YTL Corp net profit soars in Q4
Friday August 26, 2011
Cement business, offshore property development shine
PETALING JAYA: YTL Corp Bhd, whose interests range from construction and property to information and communications technology solutions, posted a 196.79% surge in net profit to RM304.01mil for the fourth quarter ended June 30 compared with the corresponding quarter a year ago.
This was achieved on better performance of its cement business and offshore property development activities.
Revenue for the quarter was 14.94% higher at RM5.42bil compared with the same quarter a year ago. For the full year, the company's net profit rose 23.62% to RM1.06bil on revenue that gained 12.51% to RM18.57bil.
Yeoh: ‘The group’s reorganisation is now pending completion.’
Group managing director Tan Sri Francis Yeoh Sock Ping said in a statement that net profit and revenue was primarily driven by the power generation, water and cement operations as well as overseas property development projects.
“In July this year, we entered into an agreement with Japan's Marubeni Corp, a key player in the international utilities market, with a view of enabling Marubeni to co-invest with us via the holding company for the group's 35% equity investment in PT Jawa Power, which owns a 1,220MW power station in Indonesia,” he said.
Yeoh added that the partnership formed the basis of cooperation on potential investments and future opportunities in the global utilities industry.
“During the year under review, we continued to make progress on the reorganisation of the group's property development assets and companies which was approved by shareholders this month and is now pending completion,” he said.
Yeoh said the reorganisation would streamline operations by housing the group's property development assets and projects within the same division to leverage on operational and developmental efficiencies and synergies.
YTL Cement Bhd posted a 19.08% rise in net profit to RM80.10mil and a 28.52% gain in revenue to RM635.04mil for the fourth quarter ended June 30 compared with the same period a year ago on higher demand from the construction industry as well as improved performance of overseas operations.
YTL Power International Bhd posted a 1.41% decline in net profit to RM451.56mil on a 13.62% rise in revenue of RM4.26bil mainly from contributions from foreign operations including in power generation, water and sewerage services as well as merchant multi-utility businesses and communications.
YTL Land and Development Bhd posted a 154.36% jump in net profit to RM9.76mil owing to higher other operating income and lower operating expenses.
However, revenue tumbled 76.59% to RM8.80mil on lower revenue recognition from both construction and property development segments due to completion of certain projects during the period under review and the timing difference of new project launches.
YTL E-Solutions Bhd's net profit advanced 98.69% to RM6.89mil mainly due to higher fee income earned from WiMAX spectrum on a 135.45% jump in revenue to RM22.44mil.
Cement business, offshore property development shine
PETALING JAYA: YTL Corp Bhd, whose interests range from construction and property to information and communications technology solutions, posted a 196.79% surge in net profit to RM304.01mil for the fourth quarter ended June 30 compared with the corresponding quarter a year ago.
This was achieved on better performance of its cement business and offshore property development activities.
Revenue for the quarter was 14.94% higher at RM5.42bil compared with the same quarter a year ago. For the full year, the company's net profit rose 23.62% to RM1.06bil on revenue that gained 12.51% to RM18.57bil.
Yeoh: ‘The group’s reorganisation is now pending completion.’
Group managing director Tan Sri Francis Yeoh Sock Ping said in a statement that net profit and revenue was primarily driven by the power generation, water and cement operations as well as overseas property development projects.
“In July this year, we entered into an agreement with Japan's Marubeni Corp, a key player in the international utilities market, with a view of enabling Marubeni to co-invest with us via the holding company for the group's 35% equity investment in PT Jawa Power, which owns a 1,220MW power station in Indonesia,” he said.
Yeoh added that the partnership formed the basis of cooperation on potential investments and future opportunities in the global utilities industry.
“During the year under review, we continued to make progress on the reorganisation of the group's property development assets and companies which was approved by shareholders this month and is now pending completion,” he said.
Yeoh said the reorganisation would streamline operations by housing the group's property development assets and projects within the same division to leverage on operational and developmental efficiencies and synergies.
YTL Cement Bhd posted a 19.08% rise in net profit to RM80.10mil and a 28.52% gain in revenue to RM635.04mil for the fourth quarter ended June 30 compared with the same period a year ago on higher demand from the construction industry as well as improved performance of overseas operations.
YTL Power International Bhd posted a 1.41% decline in net profit to RM451.56mil on a 13.62% rise in revenue of RM4.26bil mainly from contributions from foreign operations including in power generation, water and sewerage services as well as merchant multi-utility businesses and communications.
YTL Land and Development Bhd posted a 154.36% jump in net profit to RM9.76mil owing to higher other operating income and lower operating expenses.
However, revenue tumbled 76.59% to RM8.80mil on lower revenue recognition from both construction and property development segments due to completion of certain projects during the period under review and the timing difference of new project launches.
YTL E-Solutions Bhd's net profit advanced 98.69% to RM6.89mil mainly due to higher fee income earned from WiMAX spectrum on a 135.45% jump in revenue to RM22.44mil.
Thursday, August 11, 2011
EPF sells 30m YTL Power shares
Written by Joseph Chin of theedgemalaysia.com
Thursday, 11 August 2011 11:55
KUALA LUMPUR: The Employees Provident Fund (EPF), the second largest shareholder of YTL POWER INTERNATIONAL BHD [], disposed of 30.13 million shares from June 30 up to Aug 4.
Filings with Bursa Malaysia showed the EPF’s stake was reduced to 729.17 million shares or 10.09% from 759.31 million units or 10.51%. The 30.13 million shares accounted for 0.42%. The share price was trading from RM2.20 to RM1.97 as at Aug 4.
The largest shareholder is YTL Corp with 44.98% or 3.275 billion shares.
Maybank Investment Research said YTL Power was likely to record better than expected 4QFY11 results on reduced fuel cost at PowerSeraya.
“But, with dividends curtailed by its Indonesian expansion plans, widening losses at YES and potential reduction in tariffs at the Paka & Pasir Gudang IPP, its appeal as a high dividend yielding stock is waning. Downgrade to Hold with a reduced TP of RM2.10,” it said in a report on Aug 4.
The research house said it came to understand that the RM681 million cash raised from the 15% stake sale in PT Jawa Power will likely go towards bidding for a 1,000MW coal fired IPP in Indonesia.
“Also, YES is recording average revenue per user (ARPUs) of only RM30, the minimum monthly charge (versus our FY12 assumption of RM49) despite up-selling efforts. With a RM500 million cost base for YES, YTL Power is likely to conserve cash,” it said.
Maybank Research said the government’s recently set-up MyPower Corp to review existing power purchase agreements (PPA) is evidence that it is serious about reducing IPP tariffs albeit in exchange for concession extensions.
“We estimate that Paka and Pasir Gudang IPP generate some RM400m in free cash flows (FCF) per annum and easily contributes half of YTLP’s dividends. With this FCF source under threat, YTLP is again likely to conserve cash,” it said.
The research house said it maintained its earnings estimates pending 4QFY11 results but slashed its yearly dividend per share forecast from 13.1 sen to 9.4 sen.
Thursday, 11 August 2011 11:55
KUALA LUMPUR: The Employees Provident Fund (EPF), the second largest shareholder of YTL POWER INTERNATIONAL BHD [], disposed of 30.13 million shares from June 30 up to Aug 4.
Filings with Bursa Malaysia showed the EPF’s stake was reduced to 729.17 million shares or 10.09% from 759.31 million units or 10.51%. The 30.13 million shares accounted for 0.42%. The share price was trading from RM2.20 to RM1.97 as at Aug 4.
The largest shareholder is YTL Corp with 44.98% or 3.275 billion shares.
Maybank Investment Research said YTL Power was likely to record better than expected 4QFY11 results on reduced fuel cost at PowerSeraya.
“But, with dividends curtailed by its Indonesian expansion plans, widening losses at YES and potential reduction in tariffs at the Paka & Pasir Gudang IPP, its appeal as a high dividend yielding stock is waning. Downgrade to Hold with a reduced TP of RM2.10,” it said in a report on Aug 4.
The research house said it came to understand that the RM681 million cash raised from the 15% stake sale in PT Jawa Power will likely go towards bidding for a 1,000MW coal fired IPP in Indonesia.
“Also, YES is recording average revenue per user (ARPUs) of only RM30, the minimum monthly charge (versus our FY12 assumption of RM49) despite up-selling efforts. With a RM500 million cost base for YES, YTL Power is likely to conserve cash,” it said.
Maybank Research said the government’s recently set-up MyPower Corp to review existing power purchase agreements (PPA) is evidence that it is serious about reducing IPP tariffs albeit in exchange for concession extensions.
“We estimate that Paka and Pasir Gudang IPP generate some RM400m in free cash flows (FCF) per annum and easily contributes half of YTLP’s dividends. With this FCF source under threat, YTLP is again likely to conserve cash,” it said.
The research house said it maintained its earnings estimates pending 4QFY11 results but slashed its yearly dividend per share forecast from 13.1 sen to 9.4 sen.
Tuesday, August 9, 2011
外拓或致现金吃紧 杨忠礼能源评级遭下修
•经济 •财经新闻 •2011-08-08 17:37 •点击数：106 •新闻由中国报提供 • 评 • 顶
（吉隆坡8日讯）杨忠礼能源（YTLPOWR，6742，主要板基建）短期内料与日本策略伙伴，积极扩张海外业务，流动现金或潜在吃紧，致使合理价及投资评级遭券商下调。
肯纳格证券研究今日透过分析报告指出，该公司短期内将大规模扩张海外业务，尤其近来有关策略伙伴日本丸红株式会社（Marubeni Corp），投资印尼能源计划消息愈发火热，前者料能分一杯羹。
该行透露，对于杨忠礼能源与丸红株式会社合作发展印尼能源计划仍未有更详细资料，尤其是整项计划的发展规模。
“很有可能将拖低未来2年股息回酬及派发率，虽说新加坡Power Seraya电力公司仍是推动公司成长主要贡献，但我们认为，2011财年连续两季减少派息，已暗示正为末来扩张做准备。”
肯纳格证券研究调低2011及2012财年每股净股息预估17%，至9.4仙，但维持核心净利在10亿8000万至10亿9000万令吉，反映现金收紧而非营运疲软。
“就算早前乐观看待杨忠礼能源2011财年末季表现，每股净股息或达3.75仙，但全财年11.25仙每股股息预估，将是继2005年以来，首次录得按年滑落。”
基于潜在收紧现金，该行下修该股合理价，从2.61令吉减至1.91令吉，投资评级则滑至“符合大市”。
杨忠礼能源闭市收在1.86令吉，跌8仙，成交量554万5200股。
（吉隆坡8日讯）杨忠礼能源（YTLPOWR，6742，主要板基建）短期内料与日本策略伙伴，积极扩张海外业务，流动现金或潜在吃紧，致使合理价及投资评级遭券商下调。
肯纳格证券研究今日透过分析报告指出，该公司短期内将大规模扩张海外业务，尤其近来有关策略伙伴日本丸红株式会社（Marubeni Corp），投资印尼能源计划消息愈发火热，前者料能分一杯羹。
该行透露，对于杨忠礼能源与丸红株式会社合作发展印尼能源计划仍未有更详细资料，尤其是整项计划的发展规模。
“很有可能将拖低未来2年股息回酬及派发率，虽说新加坡Power Seraya电力公司仍是推动公司成长主要贡献，但我们认为，2011财年连续两季减少派息，已暗示正为末来扩张做准备。”
肯纳格证券研究调低2011及2012财年每股净股息预估17%，至9.4仙，但维持核心净利在10亿8000万至10亿9000万令吉，反映现金收紧而非营运疲软。
“就算早前乐观看待杨忠礼能源2011财年末季表现，每股净股息或达3.75仙，但全财年11.25仙每股股息预估，将是继2005年以来，首次录得按年滑落。”
基于潜在收紧现金，该行下修该股合理价，从2.61令吉减至1.91令吉，投资评级则滑至“符合大市”。
杨忠礼能源闭市收在1.86令吉，跌8仙，成交量554万5200股。
Friday, August 5, 2011
Domestic dilemmas to drag YTLP’s dividends
Written by Financial Daily
Friday, 05 August 2011 12:06
YTL Power International Bhd
(Aug 4, RM1.97)
Downgrade to hold at RM1.98 with revised target price of RM2.10 (from RM2.51): YTL Power International (YTLP) is likely to see better-than-expected 4QFY11 results on reduced fuel cost at Power Seraya. But, with dividends curtailed by its Indonesian expansion plans, widening losses at YES and potential reduction in tariffs at the Paka & Pasir Gudang IPP, its appeal as a high dividend yielding stock is waning.
Its 9MFY11 pre-tax profit surged 43% year-on-year (y-o-y) while revenue grew by 13% y-o-y. We understand the 800mw co-generation unit installed in July 2010 reduced average fuel cost per kWh by 3% to 4%. We do not discount that Power Seraya’s sterling results will continue into 4QFY11 lifting YTLP’s FY11 net profit above our RM1 billion estimate. Power Seraya contributed 54% to YTLP’s 9MFY11 pre-tax profit.
The RM681 million cash raised from the 15% stake sale in PT Jawa Power will likely go towards bidding for a 1,000mw coal-fired IPP in Indonesia. Also, YES is recording average revenue per user of only RM30 against our FY12 assumption of RM49. With a RM500 million cost base for YES, YTLP is likely to conserve cash.
The government’s recently set-up MyPower Corp to review power purchase agreements indicates it is serious about reducing IPP tariffs. We estimate that Paka & Pasir Gudang IPPs generate RM400 million in free cash flows (FCF) per year and contribute half of YTLP’s dividends. With this under threat, YTLP is again likely to conserve cash.
We maintain our earnings estimates pending 4QFY11 results but slash our yearly dividend per share (DPS) forecast from 13.1 sen to 9.4 sen.
In rolling forward our discounted cash flow based target price to end-FY12, we now assume a lower 1.3 times regulated capital value (RCV) for Wessex Water (1.5 times previously), the multiple that Li Ka-Shing paid for Northumbrian Water last month. Ascribing a 10% discount for uncertainties surrounding YES’ earnings outlook and the Malaysian IPPs, our target price is reduced from RM2.51 to RM2.10. — Maybank IB Research, Aug 4
Friday, 05 August 2011 12:06
YTL Power International Bhd
(Aug 4, RM1.97)
Downgrade to hold at RM1.98 with revised target price of RM2.10 (from RM2.51): YTL Power International (YTLP) is likely to see better-than-expected 4QFY11 results on reduced fuel cost at Power Seraya. But, with dividends curtailed by its Indonesian expansion plans, widening losses at YES and potential reduction in tariffs at the Paka & Pasir Gudang IPP, its appeal as a high dividend yielding stock is waning.
Its 9MFY11 pre-tax profit surged 43% year-on-year (y-o-y) while revenue grew by 13% y-o-y. We understand the 800mw co-generation unit installed in July 2010 reduced average fuel cost per kWh by 3% to 4%. We do not discount that Power Seraya’s sterling results will continue into 4QFY11 lifting YTLP’s FY11 net profit above our RM1 billion estimate. Power Seraya contributed 54% to YTLP’s 9MFY11 pre-tax profit.
The RM681 million cash raised from the 15% stake sale in PT Jawa Power will likely go towards bidding for a 1,000mw coal-fired IPP in Indonesia. Also, YES is recording average revenue per user of only RM30 against our FY12 assumption of RM49. With a RM500 million cost base for YES, YTLP is likely to conserve cash.
The government’s recently set-up MyPower Corp to review power purchase agreements indicates it is serious about reducing IPP tariffs. We estimate that Paka & Pasir Gudang IPPs generate RM400 million in free cash flows (FCF) per year and contribute half of YTLP’s dividends. With this under threat, YTLP is again likely to conserve cash.
We maintain our earnings estimates pending 4QFY11 results but slash our yearly dividend per share (DPS) forecast from 13.1 sen to 9.4 sen.
In rolling forward our discounted cash flow based target price to end-FY12, we now assume a lower 1.3 times regulated capital value (RCV) for Wessex Water (1.5 times previously), the multiple that Li Ka-Shing paid for Northumbrian Water last month. Ascribing a 10% discount for uncertainties surrounding YES’ earnings outlook and the Malaysian IPPs, our target price is reduced from RM2.51 to RM2.10. — Maybank IB Research, Aug 4
Wednesday, July 20, 2011
YTL Comms set to make forays into Sabah, Sarawak
Thursday July 21, 2011
PETALING JAYA: YTL Communications Sdn Bhd (YTL Comms) will put together a business plan to secure licences to roll out its 4G mobile Internet-with-voice service, Yes in Sabah and Sarawak.
Chief executive officer Wing K. Lee said it had received acknowledgement from the Government for the required licence to start operation in the two states and had been requested to submit its business plan.
“It is a multi-step process. We will put together our business plan for the licence. Hopefully we can introduce our service in Sabah and Sarawak,” he told StarBiz.
Lee clarified that although it had received acknowledgment from the Government it had not been assigned any apparatus assignment.
According to Malaysian Communications and Multimedia Commission (MCMC), apparatus assignment is the right to use or operate telecommunications apparatus in a specific frequency.
YTL Comms, which launched its Yes service last November has close to 300,000 subscribers to date and has introduced various services to the market.
Lee said on top of Sabah and Sarawak, YTL Comm was also expanding its footprint to Johor this week and was on track to introduce its Android-based applications.
“By year-end all 2,500 base stations should be deployed. We started with 1,200 base stations when we introduced our service in November. Today, we have some 2,000 base stations covering the whole Peninsular Malaysia,” he said, adding that it had all its base stations in Johor deployed.
Lee said YTL Comms was all set to launch it services in the southern state and had also engaged agents to enable consumers to sign up for their services.
YTL Comms will have 100 agents and partners (including in Malacca) by this weekend launch and 300 by end-2011.
Lee said YTL Comms had allocated RM3.3bil for the deployment of its base stations and had so far spent more than US$200mil.
Subsequently, it will introduce its services to the east coast Kota Baru, Kuantan and Terengganu. “They will skipped 3G and go to 4G when we launch our service there,” Lee said.
On the 2.6G spectrum, Lee said YTL Comms had resubmitted its business plan to the MCMC to secure a block of the 2.6G long-term evolution (LTE) spectrum or 4G spectrum as instructed earlier.
Last month, the regulator had met up with telecommunication companies on a one-on-one basis and that the companies were told to revise their plans and submit them.
The nine telcos that are slated to get a 20Mhz block of the 2.6G spectrum are the four 3G players (Celcom Axiata Bhd, DiGi.Com Bhd, Maxis Bhd, U Mobile Sdn Bhd) and the five WiMAX players (Asiaspace Sdn Bhd, Packet One Network (M) Sdn Bhd, REDtone Int Bhd, YTL Communications and Puncak Semangat Sdn Bhd).
PETALING JAYA: YTL Communications Sdn Bhd (YTL Comms) will put together a business plan to secure licences to roll out its 4G mobile Internet-with-voice service, Yes in Sabah and Sarawak.
Chief executive officer Wing K. Lee said it had received acknowledgement from the Government for the required licence to start operation in the two states and had been requested to submit its business plan.
“It is a multi-step process. We will put together our business plan for the licence. Hopefully we can introduce our service in Sabah and Sarawak,” he told StarBiz.
Lee clarified that although it had received acknowledgment from the Government it had not been assigned any apparatus assignment.
According to Malaysian Communications and Multimedia Commission (MCMC), apparatus assignment is the right to use or operate telecommunications apparatus in a specific frequency.
YTL Comms, which launched its Yes service last November has close to 300,000 subscribers to date and has introduced various services to the market.
Lee said on top of Sabah and Sarawak, YTL Comm was also expanding its footprint to Johor this week and was on track to introduce its Android-based applications.
“By year-end all 2,500 base stations should be deployed. We started with 1,200 base stations when we introduced our service in November. Today, we have some 2,000 base stations covering the whole Peninsular Malaysia,” he said, adding that it had all its base stations in Johor deployed.
Lee said YTL Comms was all set to launch it services in the southern state and had also engaged agents to enable consumers to sign up for their services.
YTL Comms will have 100 agents and partners (including in Malacca) by this weekend launch and 300 by end-2011.
Lee said YTL Comms had allocated RM3.3bil for the deployment of its base stations and had so far spent more than US$200mil.
Subsequently, it will introduce its services to the east coast Kota Baru, Kuantan and Terengganu. “They will skipped 3G and go to 4G when we launch our service there,” Lee said.
On the 2.6G spectrum, Lee said YTL Comms had resubmitted its business plan to the MCMC to secure a block of the 2.6G long-term evolution (LTE) spectrum or 4G spectrum as instructed earlier.
Last month, the regulator had met up with telecommunication companies on a one-on-one basis and that the companies were told to revise their plans and submit them.
The nine telcos that are slated to get a 20Mhz block of the 2.6G spectrum are the four 3G players (Celcom Axiata Bhd, DiGi.Com Bhd, Maxis Bhd, U Mobile Sdn Bhd) and the five WiMAX players (Asiaspace Sdn Bhd, Packet One Network (M) Sdn Bhd, REDtone Int Bhd, YTL Communications and Puncak Semangat Sdn Bhd).
Tuesday, July 12, 2011
YTL Group, Japan’s UQ to develop next-gen WiMAX tech
Written by Joseph Chin of theedgemalaysia.com
Tuesday, 12 July 2011 13:36
KUALA LUMPUR: YTL Communications Bhd is collaborating with Japan’s UQ Communications to develop and adopt the next generation WiMAX technologies.
YTL Communications, which is part of the YTL Group, said on Tuesday, July 12 both parties would work to develop the 4G ecosystems in Malaysia and beyond.
Both parties are also expected to promote international roaming amongst WiMAX operators worldwide, according to the statement.
They signed an MoU on July 7 in a move to enhance their leadership in 4G and to take WiMAX technologies to the next level.
YTL Communications CEO Wing K. Lee said amongst 4G standards, WiMAX is the most matured and widely adopted in the world.
“The signing marks the next phase in its advancement as we work with UQ Communications, a leader in its own right in one of the most advanced wireless countries in the world, to propagate the adoption of next-generation WiMAX technologies and to foster the development of 4G ecosystems in Malaysia and beyond,” he said.
WiMAX2, the next generation WiMAX standard based on IEEE 802.16m, is an ITU designated International Mobile Telecommunications-Advanced (IMT-Advanced) standard. It performs better than current LTE technologies while maintaining full compatibility with existing WiMAX devices.
Tuesday, 12 July 2011 13:36
KUALA LUMPUR: YTL Communications Bhd is collaborating with Japan’s UQ Communications to develop and adopt the next generation WiMAX technologies.
YTL Communications, which is part of the YTL Group, said on Tuesday, July 12 both parties would work to develop the 4G ecosystems in Malaysia and beyond.
Both parties are also expected to promote international roaming amongst WiMAX operators worldwide, according to the statement.
They signed an MoU on July 7 in a move to enhance their leadership in 4G and to take WiMAX technologies to the next level.
YTL Communications CEO Wing K. Lee said amongst 4G standards, WiMAX is the most matured and widely adopted in the world.
“The signing marks the next phase in its advancement as we work with UQ Communications, a leader in its own right in one of the most advanced wireless countries in the world, to propagate the adoption of next-generation WiMAX technologies and to foster the development of 4G ecosystems in Malaysia and beyond,” he said.
WiMAX2, the next generation WiMAX standard based on IEEE 802.16m, is an ITU designated International Mobile Telecommunications-Advanced (IMT-Advanced) standard. It performs better than current LTE technologies while maintaining full compatibility with existing WiMAX devices.
Sunday, July 10, 2011
YTL Comms confident of WiMAX leadership
By Goh Thean Eu Published: 2011/07/11
KUALA LUMPUR: YTL Communications Sdn Bhd (YTL Comms), a unit of YTL Power Bhd, believes it is only a matter of time before it becomes the clear leader among its WiMAX peers.
Within six months of operations, YTL Comms has signed up more than 200,000 subscribers, a number which took the market leader Packet One Networks (M) Sdn Bhd (or also known as P1) about two years to achieve.
"By end of this year, we see our subscriber base easily doubled from the 200,000 that we have now," said YTL Comms chief executive officer Wing Lee in an interview with Business Times recently.
Despite being the fastest growing WiMAX company in the country, Lee is not satisfied, as he believes the company can perform even better if consumers understand its products.
"I truly believe we need to do a better job in creating the awareness. What we are trying to educate our customers is on the concept of total cost of ownership. It is very important.
"Right now, you have one sim card for a mobile phone, one for broadband dongle, and one for a broadband and voice package for home, you got three to four bills a month, and each bill is RM80-150.
"So, if you look at it at this perspective, the total cost of ownership, you can clearly see that customers can save more by signing up with us, because by going with us, customers are actually getting all these services at-one-go," he explained.
To become a clear leader in this space, it needs to continue with its aggressive marketing campaign as well as ensure that qua-lity of its network remains top-notch. It will also bank on its wide network coverage to woo more customers.
"If you look at our network footprint, we launched with 1200 base station covering 65 per cent of the country's population, and six months later we launched coverage for the entire North South Expressway. This makes us the only company ever in Malaysia's history that has 4G that covers the entire highway.
"This means, we have larger footprint than any of the other WiMAX guys. In my assessment, when we go to places that the other guys cannot go, we should own the market," said Lee.
The company, which has invested more than RM3 billion to cover 65 per cent of the population, currently has about 1,700 base stations, and aims to have some 2,500 base stations by end of this year.
In contrast, its rival P1 aims to have about 1,600 base stations by end of the year.
Although becoming the market leader in the WiMAX space is within reach, Lee believes, with the company's capability and innovation, it can achieve more and give the incumbent mobile operators, who are offering both voice and wireless broadband services, a run for their money.
"We invest a lot of money in this brand new network, because we understand that mobile Internet is the mega-carrier, the mega-wave of new innovations. Our conclusion is voice is one of the things we should do, but there are many other things we will do in the coming months," he said.
 |
Within six months of operations, YTL Comms has signed up more than 200,000 subscribers, a number which took the market leader Packet One Networks (M) Sdn Bhd (or also known as P1) about two years to achieve.
"By end of this year, we see our subscriber base easily doubled from the 200,000 that we have now," said YTL Comms chief executive officer Wing Lee in an interview with Business Times recently.
Despite being the fastest growing WiMAX company in the country, Lee is not satisfied, as he believes the company can perform even better if consumers understand its products.
| |
"Right now, you have one sim card for a mobile phone, one for broadband dongle, and one for a broadband and voice package for home, you got three to four bills a month, and each bill is RM80-150.
"So, if you look at it at this perspective, the total cost of ownership, you can clearly see that customers can save more by signing up with us, because by going with us, customers are actually getting all these services at-one-go," he explained.
To become a clear leader in this space, it needs to continue with its aggressive marketing campaign as well as ensure that qua-lity of its network remains top-notch. It will also bank on its wide network coverage to woo more customers.
"If you look at our network footprint, we launched with 1200 base station covering 65 per cent of the country's population, and six months later we launched coverage for the entire North South Expressway. This makes us the only company ever in Malaysia's history that has 4G that covers the entire highway.
"This means, we have larger footprint than any of the other WiMAX guys. In my assessment, when we go to places that the other guys cannot go, we should own the market," said Lee.
The company, which has invested more than RM3 billion to cover 65 per cent of the population, currently has about 1,700 base stations, and aims to have some 2,500 base stations by end of this year.
In contrast, its rival P1 aims to have about 1,600 base stations by end of the year.
Although becoming the market leader in the WiMAX space is within reach, Lee believes, with the company's capability and innovation, it can achieve more and give the incumbent mobile operators, who are offering both voice and wireless broadband services, a run for their money.
"We invest a lot of money in this brand new network, because we understand that mobile Internet is the mega-carrier, the mega-wave of new innovations. Our conclusion is voice is one of the things we should do, but there are many other things we will do in the coming months," he said.
Thursday, July 7, 2011
Marubeni buying 43% stake in YTL Jawa Power for US$224mil
Friday July 8, 2011
PETALING JAYA: Marubeni Corp will acquire a 42.86% equity stake in YTL Jawa Power Holdings BV, which is a wholly-owned subsidiary of YTL Power International Bhd, for US$224mil (RM680.96mil).Upon completion of the acquisition, YTL Power is expected to realise a gain on disposal of RM210mil.
The share purchase agreement will enable Marubeni to co-invest in YTL Jawa Power Holdings BV, the company which holds YTL Power's 35% equity interest in PT Jawa Power, the owner of a 1,220 megawatt power station in Indonesia.
The acquisition by Marubeni will be undertaken via its wholly-owned subsidiary, Aster Power Holding BV, YTL Power said in a statement yesterday.
YTL Power executive director Datuk Yeoh Seok Hong said the transaction would enable Marubeni to co-invest with the company and will form the basis of a strategic partnership going forward.
“Marubeni is a strong and well-respected player in the international utilities market and this collaboration will enable YTL Power and Marubeni to cooperate on potential investments and the development of future opportunities in the global utilities industry,” he said in the statement.
PT Jawa Power owns a coal-fired power generation plant with an installed capacity of 1,220 megawatts located at the Paiton Power Generation Complex in Probolinggo, in East Java, Indonesia.
Chief operating officer (power projects and infrastructure division of Marubeni) Masumi Kakinoki said through the transaction, Marubeni would build a firm partnership with YTL as a strategic partner for future development not only in Asia but also all over the world.
“Marubeni intends to collaborate with YTL in multiple areas of infrastructure such as power, water and transportation for the further growth of Marubeni and YTL as global utility players,” he said.
YTL Power said in the statement that its growth strategy was to invest in long-term geographically diverse infrastructure assets, while concurrently achieving synergies across its portfolio of utility businesses.
“The YTL Power group is continuously seeking to develop and expand its presence in utility businesses both in Malaysia and offshore.”
YTL Power owns 100% stakes in Wessex Water Limited, a water and sewerage operator in Britain, PowerSeraya Ltd, which has a total licensed capacity of 3,100 megawatts representing approximately 25% of Singapore's licensed generation capacity and operates multi-utility businesses, and YTL Power Generation Sdn Bhd, an independent power producer which owns power stations with a combined generation capacity of 1,212 megawatts in Malaysia.
It also has an indirect 33.5% investment in ElectraNet Pty Ltd, the company which owns and operates the power transmission grid for South Australia under a 200-year concession.
By the star business news
Thursday, May 5, 2011
4G – pure hype or hope?
Friday Reflections - By B.K. Sidhu
THE buzz word in the telecoms industry is 4G.
You cannot but notice the advertisements popping up claiming that 4G is here. It is a global phenomenon but some say operators are coining their own definitions for the term “4G'' as a marketing gimmick.
We have heard of 1G, 2G and 3G over the past two decades. The next is 4G and the flavour of the so-called 4G technology a new generation of radio upgrades is that it promises to improve the throughput and capacity of wireless phone networks.
Some weeks ago, a chief of a cellular company did ask if 4G was indeed here. He represents a 3G company, which is rival to the two companies now offering Wimax in the country. These two Wimax players claim their networks are 4G enabled.
The chief's cynicism can be understood and he is not alone to raise the question.
The view of the 3G players is that, they are able to deliver what the customers need today and when combined with LTE (long term evolution - which is the natural technology path from 3G) they can conquer the future.
Although the Wimax players had to go through some rough patches in trying to establish Wimax as a 4G technology “an effort is under way by leading Wimax and LTE suppliers and operators to provide a common framework for 4G coexistence.''
Experts claim the Wimax equipment market will reach US$6.9bil by 2014 and this is hardly a sign of a technology that is running out of steam and US-based Clearwire remains the biggest Wimax provider in the world,
It was YTL Communications that used the 4G word extensively at the launch of their “Yes” service last November. Rival Packet One Networks (P1) did not wait a second to rename theirs to 4G too. YTL claims that the speed it offers is three to five times faster than 3G.
So when YTL and P1 used the 4G word in November last year there was much buzz if Wimax was indeed in the 4G band.
Things have changed.
In early December the International Telecommunication Union (ITU) adopted a broader definition of “4G.” Among other things it said “all forerunners like Wimax can call themselves 4G.''
In essence, two of the technologies Wimax and LTE now counted as 4G are made of much of the same stuff.
All these technology lingo does not mean much to the consumer. He just wants what is promised by the provider, be it reliability of speed, capacity, coverage, quality and at a price which is reasonable.
The 4G networks may not be 100% mature and like any new technology, nothing is perfect, more so since choice of devices is still lacking.
But if the two players claim theirs is 4G and it meets ITU guidelines then 4G has arrived and if they are not transparent, the truth will be uncovered sooner rather than later.
There may be a lot of hype about 4G but this next generation technology is also hope for providers to take consumers on the next journey where the lifestyle demands will be more intense than in the 3G era.
So it would help if the licences for LTE were issued sooner rather than later. The eventual date for LTE spectrum assignment is Jan 1, 2013 and if this can be pushed a year ahead, it would help the market move faster and be in sync with other developed markets.
For any technology to mature, the consumer has a role too as mass adoption helps and we can begin by warming up to Facetime and Tango.
# Deputy news editor B.K. Sidhu feels that operators should give all the speed that users want with the bandwidth and not throttle and spoilt the user experience they talk about.
THE buzz word in the telecoms industry is 4G.
You cannot but notice the advertisements popping up claiming that 4G is here. It is a global phenomenon but some say operators are coining their own definitions for the term “4G'' as a marketing gimmick.
We have heard of 1G, 2G and 3G over the past two decades. The next is 4G and the flavour of the so-called 4G technology a new generation of radio upgrades is that it promises to improve the throughput and capacity of wireless phone networks.
Some weeks ago, a chief of a cellular company did ask if 4G was indeed here. He represents a 3G company, which is rival to the two companies now offering Wimax in the country. These two Wimax players claim their networks are 4G enabled.
The chief's cynicism can be understood and he is not alone to raise the question.
The view of the 3G players is that, they are able to deliver what the customers need today and when combined with LTE (long term evolution - which is the natural technology path from 3G) they can conquer the future.
Although the Wimax players had to go through some rough patches in trying to establish Wimax as a 4G technology “an effort is under way by leading Wimax and LTE suppliers and operators to provide a common framework for 4G coexistence.''
Experts claim the Wimax equipment market will reach US$6.9bil by 2014 and this is hardly a sign of a technology that is running out of steam and US-based Clearwire remains the biggest Wimax provider in the world,
It was YTL Communications that used the 4G word extensively at the launch of their “Yes” service last November. Rival Packet One Networks (P1) did not wait a second to rename theirs to 4G too. YTL claims that the speed it offers is three to five times faster than 3G.
So when YTL and P1 used the 4G word in November last year there was much buzz if Wimax was indeed in the 4G band.
Things have changed.
In early December the International Telecommunication Union (ITU) adopted a broader definition of “4G.” Among other things it said “all forerunners like Wimax can call themselves 4G.''
In essence, two of the technologies Wimax and LTE now counted as 4G are made of much of the same stuff.
All these technology lingo does not mean much to the consumer. He just wants what is promised by the provider, be it reliability of speed, capacity, coverage, quality and at a price which is reasonable.
The 4G networks may not be 100% mature and like any new technology, nothing is perfect, more so since choice of devices is still lacking.
But if the two players claim theirs is 4G and it meets ITU guidelines then 4G has arrived and if they are not transparent, the truth will be uncovered sooner rather than later.
There may be a lot of hype about 4G but this next generation technology is also hope for providers to take consumers on the next journey where the lifestyle demands will be more intense than in the 3G era.
So it would help if the licences for LTE were issued sooner rather than later. The eventual date for LTE spectrum assignment is Jan 1, 2013 and if this can be pushed a year ahead, it would help the market move faster and be in sync with other developed markets.
For any technology to mature, the consumer has a role too as mass adoption helps and we can begin by warming up to Facetime and Tango.
# Deputy news editor B.K. Sidhu feels that operators should give all the speed that users want with the bandwidth and not throttle and spoilt the user experience they talk about.
Sunday, April 3, 2011
YTL Power has got the power
Written by The Edge Financial Daily Friday, 01 April 2011 12:08
YTL Power International Bhd
(March 31, RM2.30)
Initiate coverage at RM2.29 with buy call and target price RM2.70: We initiate coverage on YTL Power International (YTLP) with a “buy” call and RM2.70 target price.
We like its portfolio of steady concession businesses. While we are positive on Yes, YTL Communications’ new 4G mobile Internet service, we expect it to incur start-up losses.
That said, we postulate YTLP cash flows are strong enough to maintain net dividend per share (DPS) at 13.1 sen or a 5.7% net dividend yield. More M&A may beckon.
YTLP has interests in power generation in three countries (YTL Power Generation in Malaysia, Power Seraya in Singapore and 35%-owned Jawa Power in Indonesia), power transmission in Australia (33.5%-owned Electranet), water and sewerage services in the UK (Wessex Water), telecommunications in Malaysia (60%-owned YTL Communications) and a nascent oil shale joint venture in Jordan (30%-owned).
Its power generation assets are multi-fuels (oil, gas and coal) and it operates under different power purchasing agreement (PPA) models (take or pay, liberalised market, and capacity and energy payment), where the skill sets are rare in any independent power producer (IPP) company. Wessex Water is the best water and sewerage company in the UK. YTL Communications’ YES garnered 100,000 subscribers in just 105 days.
We estimate FY11 group core net profit to be 10% lower year-on-year on YTL Communications’ start-up losses. Ex-YTL Communications, we estimate 7% compound annual rowth rate over the next three years on steady earnings growth at Power Seraya and Wessex Water.
We believe the 50% lower quarter-on-quarter net DPS in 2QFY11 was due to RM1 billion in debt repaid. Based on our cash flow projections, YTLP can maintain FY10 net DPS of 13.1 sen in current FY11 and the next few years.
We initiate coverage with a “buy” call and RM2.70 target price (TP). Our sum-of-parts (SOP) TP is largely discounted cash flow-based. Re-rating catalysts are:
(i) resumption of quarterly 3.75 sen net DPS;
(ii) lower than expected losses at YTL Communications; and
(iii) M&A — recall that YTLP was one of two last bidders for
the 300MW to 450MW Bibiyana gas IPP in Bangladesh in October 2010. YTLP is likely not done with M&A just yet. — Maybank IB Research, March 31
YTL Power International Bhd
(March 31, RM2.30)
Initiate coverage at RM2.29 with buy call and target price RM2.70: We initiate coverage on YTL Power International (YTLP) with a “buy” call and RM2.70 target price.
We like its portfolio of steady concession businesses. While we are positive on Yes, YTL Communications’ new 4G mobile Internet service, we expect it to incur start-up losses.
That said, we postulate YTLP cash flows are strong enough to maintain net dividend per share (DPS) at 13.1 sen or a 5.7% net dividend yield. More M&A may beckon.
YTLP has interests in power generation in three countries (YTL Power Generation in Malaysia, Power Seraya in Singapore and 35%-owned Jawa Power in Indonesia), power transmission in Australia (33.5%-owned Electranet), water and sewerage services in the UK (Wessex Water), telecommunications in Malaysia (60%-owned YTL Communications) and a nascent oil shale joint venture in Jordan (30%-owned).Its power generation assets are multi-fuels (oil, gas and coal) and it operates under different power purchasing agreement (PPA) models (take or pay, liberalised market, and capacity and energy payment), where the skill sets are rare in any independent power producer (IPP) company. Wessex Water is the best water and sewerage company in the UK. YTL Communications’ YES garnered 100,000 subscribers in just 105 days.
We estimate FY11 group core net profit to be 10% lower year-on-year on YTL Communications’ start-up losses. Ex-YTL Communications, we estimate 7% compound annual rowth rate over the next three years on steady earnings growth at Power Seraya and Wessex Water.
We believe the 50% lower quarter-on-quarter net DPS in 2QFY11 was due to RM1 billion in debt repaid. Based on our cash flow projections, YTLP can maintain FY10 net DPS of 13.1 sen in current FY11 and the next few years.
We initiate coverage with a “buy” call and RM2.70 target price (TP). Our sum-of-parts (SOP) TP is largely discounted cash flow-based. Re-rating catalysts are:
(i) resumption of quarterly 3.75 sen net DPS;
(ii) lower than expected losses at YTL Communications; and
(iii) M&A — recall that YTLP was one of two last bidders for
the 300MW to 450MW Bibiyana gas IPP in Bangladesh in October 2010. YTLP is likely not done with M&A just yet. — Maybank IB Research, March 31
能让5人同时视讯通话 杨忠礼电力5月推新手机
2011/04/02 5:47:13 PM
南洋商报 报道：何开玄
（吉隆坡2日讯）杨忠礼电力（YTLpower，6742，主板基建股）最迟5月将引进，可供5人同时进行视讯通话的手机。
杨忠礼机构（YTLCorp，4677，主板建筑股）董事经理丹斯里杨肃斌向记者指出，这款由Android技术支援的手机，是YES 4G流动的强打产品之一。
目前苹果iPhone 4的视讯通话FaceTime功能，也只能进行一对一的视像通话，杨肃斌指市面上除了YES 4G流动网络之外，大部分网络都无法支撑着这项功能。
“我们将推出的Android手机，将是第一部具5人同时进行视像通话功能的手机。”
杨肃斌接受《南洋商报》专访时提到这款手机眉飞色舞：“更重要的是，YES 4G流动网络是唯一有能力，支撑着这项多方视像通话功能的电讯网络，且能确保通畅使用。”
他表示，当这项具备着多人视像通话功能的Android手机推出市场后，会为用户带来全新的视像网络视觉享受，也展现出YES 4G流动网络的高效和能力。
国内网络速度欠完善 FaceTime画面不通畅
杨肃斌表示，当我们可以同时通过流动电话和多人进行视像通话，且流动网络通畅，那是多么神奇的功能，届时将会令所有人感到震撼。
他说，鉴于网络速度不足和不完善，许多国外用户在使用FaceTime功能时都面临着画面不清楚和网路不通畅的问题。
iPhone 4不宣传
“因此，当iPhone 4手机在国内推介时，更干脆不宣传FaceTime功能，因为国内网络根本无法支撑着该功能。”
杨肃斌认为，要测试网络速度的最有效方式，就是确保可否使用FaceTime功能，这项同时具备通话和影像于一体的功能，所需网速和能量非常高。
他说，YES 4G流动网络服务就能做到这一点，解决其它网络无法解决的难题，让FaceTime功能可在非常顺畅和高解读的情况下使用。
南洋商报 报道：何开玄
（吉隆坡2日讯）杨忠礼电力（YTLpower，6742，主板基建股）最迟5月将引进，可供5人同时进行视讯通话的手机。
杨忠礼机构（YTLCorp，4677，主板建筑股）董事经理丹斯里杨肃斌向记者指出，这款由Android技术支援的手机，是YES 4G流动的强打产品之一。
目前苹果iPhone 4的视讯通话FaceTime功能，也只能进行一对一的视像通话，杨肃斌指市面上除了YES 4G流动网络之外，大部分网络都无法支撑着这项功能。
“我们将推出的Android手机，将是第一部具5人同时进行视像通话功能的手机。”
杨肃斌接受《南洋商报》专访时提到这款手机眉飞色舞：“更重要的是，YES 4G流动网络是唯一有能力，支撑着这项多方视像通话功能的电讯网络，且能确保通畅使用。”
他表示，当这项具备着多人视像通话功能的Android手机推出市场后，会为用户带来全新的视像网络视觉享受，也展现出YES 4G流动网络的高效和能力。
国内网络速度欠完善 FaceTime画面不通畅
杨肃斌表示，当我们可以同时通过流动电话和多人进行视像通话，且流动网络通畅，那是多么神奇的功能，届时将会令所有人感到震撼。
他说，鉴于网络速度不足和不完善，许多国外用户在使用FaceTime功能时都面临着画面不清楚和网路不通畅的问题。
iPhone 4不宣传
“因此，当iPhone 4手机在国内推介时，更干脆不宣传FaceTime功能，因为国内网络根本无法支撑着该功能。”
杨肃斌认为，要测试网络速度的最有效方式，就是确保可否使用FaceTime功能，这项同时具备通话和影像于一体的功能，所需网速和能量非常高。
他说，YES 4G流动网络服务就能做到这一点，解决其它网络无法解决的难题，让FaceTime功能可在非常顺畅和高解读的情况下使用。
Wednesday, March 30, 2011
Addressing energy needs
Written by Financial Daily
Wednesday, 30 March 2011 11:11
Power sector
The Malaysian government has announced plans to build two nuclear power plants with 1,000 MW capacity each, with the first plant ready for operation in 2021. The move has sparked off protests from various organisations, especially after the recent nuclear disaster in Japan. We believe the government’s plan for nuclear plants will be delayed. The government is also unlikely to go ahead with unpopular programmes ahead of the upcoming election.
Given that power from the Bakun hydroelectric station in Sarawak would not come to Peninsular Malaysia, Tenaga is developing a new 1,000 MW coal-fired power plant on its existing power plant site in Manjung, Perak. Another1,000MW new coal plant will be awarded to either MMC or Jimah Power over the next two to three months.
We gather that two out of the five first-generation independent power producers (IPPs) — YTLP, Sime Darby, Genting, MMC and Tanjong — have agreed to the preliminary terms proposed by the government to extend power purchase agreements (PPAs). We believe deferment of nuclear plant development and commissioning of new gas facilities in Melaka will speed up the first-gen PPA negotiation given the increased gas supply.
PPA extension is a win-win situation for both Tenaga and IPPs, as Tenaga will secure reliable supply at the relatively low replacement cost, while IPPs will see upside in earnings from extension that is not reflected in their valuations.
Rising coal prices will be a drag on Tenaga’s FY12F earnings, but we expect a base tariff hike to take effect in FY12F after the general election. Tenaga’s current depressed valuation offers good entry point for stronger earnings ahead.
YTLP is a “hold” for potential upside from PPA renegotiation. Assuming the returns are at 50% of the existing PPAs, the PPA extension will still enhance YTLP’s FY16F earnings before interest and tax by about RM90 million a year (6% of FY11F net profit) with an assumed capex of RM100 million per annum. We have a “hold” call for Petgas for upside from re-gasification project and 4% yield. — HwangDBS Vickers Research, March 29
This article appeared in The Edge Financial Daily, March 30, 2011.
Wednesday, 30 March 2011 11:11
Power sector
The Malaysian government has announced plans to build two nuclear power plants with 1,000 MW capacity each, with the first plant ready for operation in 2021. The move has sparked off protests from various organisations, especially after the recent nuclear disaster in Japan. We believe the government’s plan for nuclear plants will be delayed. The government is also unlikely to go ahead with unpopular programmes ahead of the upcoming election.
Given that power from the Bakun hydroelectric station in Sarawak would not come to Peninsular Malaysia, Tenaga is developing a new 1,000 MW coal-fired power plant on its existing power plant site in Manjung, Perak. Another1,000MW new coal plant will be awarded to either MMC or Jimah Power over the next two to three months.
We gather that two out of the five first-generation independent power producers (IPPs) — YTLP, Sime Darby, Genting, MMC and Tanjong — have agreed to the preliminary terms proposed by the government to extend power purchase agreements (PPAs). We believe deferment of nuclear plant development and commissioning of new gas facilities in Melaka will speed up the first-gen PPA negotiation given the increased gas supply.
PPA extension is a win-win situation for both Tenaga and IPPs, as Tenaga will secure reliable supply at the relatively low replacement cost, while IPPs will see upside in earnings from extension that is not reflected in their valuations.
Rising coal prices will be a drag on Tenaga’s FY12F earnings, but we expect a base tariff hike to take effect in FY12F after the general election. Tenaga’s current depressed valuation offers good entry point for stronger earnings ahead.
YTLP is a “hold” for potential upside from PPA renegotiation. Assuming the returns are at 50% of the existing PPAs, the PPA extension will still enhance YTLP’s FY16F earnings before interest and tax by about RM90 million a year (6% of FY11F net profit) with an assumed capex of RM100 million per annum. We have a “hold” call for Petgas for upside from re-gasification project and 4% yield. — HwangDBS Vickers Research, March 29
This article appeared in The Edge Financial Daily, March 30, 2011.
Tuesday, March 22, 2011
YTL Power’s high dividends in doubt
Written by Financial Daily
Tuesday, 22 March 2011 11:33
YTL Power International Bhd
(March 21, RM2.29)
Maintain market perform at RM2.31 with fair value at RM2.57: YTL Communications finally unveiled two new Yes devices early this month — the Samsung Buzz mobile phone and the Zoom router. Our initial impressions of the Buzz are less than favourable mainly due to: 1) smaller than-average screen size; 2) lack of applications; 3) keypad being too small; and 4) a not-so-friendly user interface. We welcome the news that YTL Comms plans to launch Android smartphones in June, given their rising popularity.
The new Valuepacks offer competitive rates for heavy data users, as not only do they enjoy bigger savings, they also receive free voice calls and SMS to any mobile number.
However, for mobility, we believe the fact that a user must use the Samsung Buzz to enjoy the free voice minutes and SMS is a serious dampener. Otherwise, you need to login using a Yes ID to a non-handset device (such as a desktop or laptop) to utilise the freebies. However, this means a lack of convenience and/or mobility.
We are somewhat concerned with YTL Power’s lower-than-expected second interim single tier dividend per share (DPS) of 1.875 sen (we had forecast 3.75 sen).
After further discussions with its management, we were still unable to get a clear sense of the level of future dividend payouts.
Preferring to remain conservative, we have cut our FY11 DPS forecast from 13.1 sen to 9.4 sen. Thus, we only expect YTL Power to subsequently declare a third interim and final dividend of only 1.875 sen/share each. We believe management is looking to conserve cash, as YTL Comms plans to spend more to boost coverage.
The risks include: 1) unfavourable forex movements, which will adversely affect the translation of foreign earnings; 2) potential change in competitive landscape under the National Energy Plan; and 3) execution risk and poor subscriber numbers for WiMAX.
We have left our earnings forecasts unchanged.
We have maintained our sum-of-parts-derived fair value on YLT Power at RM2.57. Without the management’s assurance regarding future dividends, we believe YTL Power may lose a bit of shine since the key investment thesis for the stock has historically been high dividend yields. For FY11, we now expect YTL Power to only offer a relatively mediocre gross dividend yield of 5.5% (FY10: 7.6%). — RHB Research, March 21
This article appeared in The Edge Financial Daily, March 22, 2011.
Tuesday, 22 March 2011 11:33
YTL Power International Bhd
(March 21, RM2.29)
Maintain market perform at RM2.31 with fair value at RM2.57: YTL Communications finally unveiled two new Yes devices early this month — the Samsung Buzz mobile phone and the Zoom router. Our initial impressions of the Buzz are less than favourable mainly due to: 1) smaller than-average screen size; 2) lack of applications; 3) keypad being too small; and 4) a not-so-friendly user interface. We welcome the news that YTL Comms plans to launch Android smartphones in June, given their rising popularity.
The new Valuepacks offer competitive rates for heavy data users, as not only do they enjoy bigger savings, they also receive free voice calls and SMS to any mobile number.
However, for mobility, we believe the fact that a user must use the Samsung Buzz to enjoy the free voice minutes and SMS is a serious dampener. Otherwise, you need to login using a Yes ID to a non-handset device (such as a desktop or laptop) to utilise the freebies. However, this means a lack of convenience and/or mobility.
We are somewhat concerned with YTL Power’s lower-than-expected second interim single tier dividend per share (DPS) of 1.875 sen (we had forecast 3.75 sen).
After further discussions with its management, we were still unable to get a clear sense of the level of future dividend payouts.
Preferring to remain conservative, we have cut our FY11 DPS forecast from 13.1 sen to 9.4 sen. Thus, we only expect YTL Power to subsequently declare a third interim and final dividend of only 1.875 sen/share each. We believe management is looking to conserve cash, as YTL Comms plans to spend more to boost coverage.
The risks include: 1) unfavourable forex movements, which will adversely affect the translation of foreign earnings; 2) potential change in competitive landscape under the National Energy Plan; and 3) execution risk and poor subscriber numbers for WiMAX.
We have left our earnings forecasts unchanged.
We have maintained our sum-of-parts-derived fair value on YLT Power at RM2.57. Without the management’s assurance regarding future dividends, we believe YTL Power may lose a bit of shine since the key investment thesis for the stock has historically been high dividend yields. For FY11, we now expect YTL Power to only offer a relatively mediocre gross dividend yield of 5.5% (FY10: 7.6%). — RHB Research, March 21
This article appeared in The Edge Financial Daily, March 22, 2011.
Monday, March 14, 2011
YTL Comms to launch Android phones in June
By B.K. SIDHU
bksidhu@thestar.com.my
It sells nearly 7,000 WiMAX-enabled handsets in 3 daysKUALA LUMPUR: In just three days YTL Communications Bhd (YTL Comms) has managed to sell nearly 7,000 units of its first two WiMAX-enabled handsets and in June it will launch the next-generation smartphones running on the Android platform, said executive chairman Tan Sri Francis Yeoh.
WiMAX-enabled handphones are limited in supply but since Friday two new models, Yes Buzz and Yes Zoom, were made available, priced at RM488 and RM399 respectively. These devices can be integrated seamlessly with other Yes 4G devices with a single Yes ID.
Since the launch of its Yes service in November, YTL Comms has drawn more than 100,000 active users to its network. According to Yeoh, the next target segment is the over 400,000 students in the country.
“We are telling them (the students) to taste the power of 4G. A lot of people (only) know the power of (our network when they get onto our network). Every month we are getting more and more users on our network.
Tan Sri Francis Yeoh holding the latest Yes Buzz handphone. He says the next target segment for YTL Comms is the over 400,000 students in the country.“FaceTime allows an incredible amount of versatility with this video-conferencing tool and when you are on Yes, there is no issue of throttling or buffering,''' he told StarBiz in an interview.
Yeoh said that even migrant workers were using Yes and not just for voice calls; they use chat and video transfer and find “our nine sen per minute pricing very affordable.”
“They are emailing pictures back to their country and this is a shift we have not seen before. This goes to show that multimedia is here,'' he said.
The nine sen pay-as-you-go service is for 3MB (megabytes) of data, a one-minute voice call or one SMS.
On Friday, the company launched two Yes Valuepacks, priced at RM68 and RM150 a month, which offer 3.5GB and 10GB of data usage respectively. On top of mobile data, users get to make 250 minutes of voice calls and send 250 text messages a month.
The Yes Buzz is a mobile phone that doubles as a mobile Internet device which can connect to the Yes network, allowing users to browse the Internet on top of making voice calls and sending text messages.
YTL Comms' WiMAX network covers 60% of the populated areas and by year-end, it will be 80%. The company is investing RM2.5bil in the venture. Yeoh declined to say when the company will break even but a source said, “we reckon it would take about two years.''
Asked how many users are able to use the network without it getting congested, Yeoh said: “Our network can cater to 15 million users without us putting in more investments.''
So the challenge for the company going forward is to get as many users as it can to use its network since it has a lot of capacity to offer.
“People are buzzing on the Buzz; something is surely happening with nine sen a minute,'' he said.
Asked about market share, Yeoh said: “We believe our share of mobile Internet is 100%. No (player) has nationwide (coverage) for mobile Internet as we have and you can go to any part of the North-South Expressway and still get our service.''
Analysts tracking the sector are unable to give exact wireless broadband numbers, nor is the data updated on the regulator's website.
But going by mobile users, Maxis Bhd had 12.9 million users at the end of last year, Celcom Axiata Bhd, 11.2 million and DiGi.Com Bhd, 8.7 million.
By market share, analysts' data point to Maxis having about 40%, Celcom, 33%, DiGi.Com, 26%, and U Mobile, 0.7%. The balance is shared by others including mobile virtual network operators.
Thus far Yes 4G has carried over one million minutes of voice calls, 670,000 SMSes and over 104 terabytes of data traffic. Of the 100,000 active subscribers, Yeoh said there was an equal number with huddle and dongles.
Thursday, March 10, 2011
YTL launches smartphone to capture WiMAX segment
Written by Aishah Mustapha Thursday, 10 March 2011 11:29
KUALA LUMPUR: YTL Communications Sdn Bhd (YTL Comms) launched its first WiMAX phone last week in a move to cement its position in the industry.
The introduction of the WiMAX phone called Yes Buzz, a smartphone by Samsung, would plug a hole in the market that lacks WiMAX devices needed for a long-term catalyst.
Although viewed positively by analysts, the fact remains that both voice and data market is highly competitive.
According to an industry source, the churn rate for voice prepaid services can reach up to 50%, making the landscape tightly contested. Furthermore, mobile penetration is already at 110% of the population.
“Smart phone penetration is still low for the telcos. With just one phone out, YTL needs to ensure that it catches the market fast while it is still growing. The market lacks 4G devices as it is,” said the industry source.
The group will be looking at launching several smart devices throughout the year.
YTL has chalked up an estimated 100,000 active subscribers for its broadband services since its launch in November last year. Based on rough calculations, this gives a subscriber acquisition of over 25,000 a month since its launch.
To put this in comparison over three months of 4QFY10 ended Dec 31, mobile broadband leader Celcom added 54,000 subscribers, Maxis added 70,000 subscribers while WiMAX player P1 added 56,000 subscribers.
YTL Comms also registered maiden revenue contribution towards parent YTL Power International (YTLP) for its 1HFY11 results ended Dec 31. The WiMAX segment contributed a cumulative RM4.7 million to YTLP’s revenue with a cumulative pretax loss of RM27.7 million for 1HFY11. Meanwhile, Green Packet continued to be in the red, incurring a pretax loss of RM99.8 million for 4QFY10 ended Dec 31.
Analysts have noted that the WiMAX business will undergo a long gestation period to break even, especially given that RM2.5 billion will be invested into the network and operations over five years.
However, YTLP’s foray into the telco sector has made several research houses cautious of its future earnings, with the possibility of the WiMAX business hurting its stable earnings.
JP Morgan highlighted the potential risks to earnings from its WiMAX entry, thereby changing YTLP’s earnings profile. The research house has maintained an “underweight” rating on YTLP.
“We also remain particularly cautious on the group’s WiMAX operation (launched in Nov-10), which changes the earnings profile and could provide downside risk to earnings (and potentially dividends) should operational start-up losses escalate beyond expectations.
For now, the group’s gross cash position of RM7.8 billion and attractive payment terms for its capex should help minimise the risk of any material cuts in dividends,” it said.
ECM Libra maintained a “hold” on YTLP, and said it is awaiting management guidance on the new WiMAX business that could potentially introduce a downside to its net dividend forecast.
“As YTLP’s earnings are largely within expectations, we leave our earnings estimates unchanged. On its new WIMAX business, we await management guidance and have yet to impute it into our forecasts. Pending clarification from management, we highlight the potential downside risk to our net dividend forecast of 15 sen,” it said.
This article appeared in The Edge Financial Daily, March 10, 2011.
KUALA LUMPUR: YTL Communications Sdn Bhd (YTL Comms) launched its first WiMAX phone last week in a move to cement its position in the industry.
The introduction of the WiMAX phone called Yes Buzz, a smartphone by Samsung, would plug a hole in the market that lacks WiMAX devices needed for a long-term catalyst.
Although viewed positively by analysts, the fact remains that both voice and data market is highly competitive.
According to an industry source, the churn rate for voice prepaid services can reach up to 50%, making the landscape tightly contested. Furthermore, mobile penetration is already at 110% of the population.
“Smart phone penetration is still low for the telcos. With just one phone out, YTL needs to ensure that it catches the market fast while it is still growing. The market lacks 4G devices as it is,” said the industry source.
The group will be looking at launching several smart devices throughout the year.
YTL has chalked up an estimated 100,000 active subscribers for its broadband services since its launch in November last year. Based on rough calculations, this gives a subscriber acquisition of over 25,000 a month since its launch.
To put this in comparison over three months of 4QFY10 ended Dec 31, mobile broadband leader Celcom added 54,000 subscribers, Maxis added 70,000 subscribers while WiMAX player P1 added 56,000 subscribers.
YTL Comms also registered maiden revenue contribution towards parent YTL Power International (YTLP) for its 1HFY11 results ended Dec 31. The WiMAX segment contributed a cumulative RM4.7 million to YTLP’s revenue with a cumulative pretax loss of RM27.7 million for 1HFY11. Meanwhile, Green Packet continued to be in the red, incurring a pretax loss of RM99.8 million for 4QFY10 ended Dec 31.
Analysts have noted that the WiMAX business will undergo a long gestation period to break even, especially given that RM2.5 billion will be invested into the network and operations over five years.
However, YTLP’s foray into the telco sector has made several research houses cautious of its future earnings, with the possibility of the WiMAX business hurting its stable earnings.
JP Morgan highlighted the potential risks to earnings from its WiMAX entry, thereby changing YTLP’s earnings profile. The research house has maintained an “underweight” rating on YTLP.
“We also remain particularly cautious on the group’s WiMAX operation (launched in Nov-10), which changes the earnings profile and could provide downside risk to earnings (and potentially dividends) should operational start-up losses escalate beyond expectations.
For now, the group’s gross cash position of RM7.8 billion and attractive payment terms for its capex should help minimise the risk of any material cuts in dividends,” it said.
ECM Libra maintained a “hold” on YTLP, and said it is awaiting management guidance on the new WiMAX business that could potentially introduce a downside to its net dividend forecast.
“As YTLP’s earnings are largely within expectations, we leave our earnings estimates unchanged. On its new WIMAX business, we await management guidance and have yet to impute it into our forecasts. Pending clarification from management, we highlight the potential downside risk to our net dividend forecast of 15 sen,” it said.
This article appeared in The Edge Financial Daily, March 10, 2011.
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