Analysts' Recommendation
Affin-UOB makes positive calls on YTL companies
Affin-UOB Research, 30 October 2003
YTL Cement BUY
YTL Corp BUY
YTL Power ACCUMULATE
Market
The market beyond 800... a confluence of positive factors
That the market is holding up well above 800 is positive and there is a confluence of positive factors to support higher valuations. Taking our KLCI target to 900, which translates to a P/E of 16x 2004 earnings. This is not unreasonable, given that markets such as Hong Kong and Singapore are trading at P/Es of close to 17x.
Economy
A Yen for your thoughts...
The Japanese Yen has appreciated against the US Dollar over the past six weeks, sparked by the G7 statement which called for greater flexibility in exchange rates. The way we see it, a new trading range for the Japanese Yen against the US Dollar of ?100-?112 is in the making from the ?115-?120 over the past ten months.
|
Stock |
Call |
Price |
Year End |
Pretax Profit (RM’m) |
Net Profit |
EPS |
EPS Growth |
P/E(x) |
DPS (sen) |
Yield (%) |
|
YTL Cement |
Buy |
4.70 |
6/03 |
80.8 |
67.0 |
48.2 |
1% |
9.6 |
20.0 |
4.3 |
|
YTLC MK |
|
|
6/04E |
93.8 |
72.3 |
37.9 |
(21%) |
12.4 |
20.0 |
4.3 |
|
YTLS.KL |
|
|
6/05E |
97.2 |
75.7 |
39.6 |
5% |
11.9 |
20.0 |
4.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
YTL Corp |
Buy |
4.58 |
6/03 |
1,048.9 |
515.1 |
34.9 |
38% |
13.1 |
7.5 |
1.6 |
|
YTLMK |
|
|
6/04E |
1,283.7 |
664.9 |
45.1 |
29% |
10.2 |
7.5 |
1.6 |
|
YTLS.KL |
|
|
6/06E |
1,153.9 |
551.0 |
37.4 |
(17%) |
12.3 |
7.5 |
1.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
YTL Power |
Accum |
3.38 |
6/03 |
836.6 |
603.4 |
28.4 |
22% |
12.8 |
20.0 |
5.9 |
|
YTLP MK |
|
|
6/04E |
819.3 |
589.9 |
25.8 |
(2%) |
13.1 |
20.0 |
5.9 |
|
YTLP.KL |
|
|
6/05E |
676.6 |
632.1 |
27.6 |
7% |
12.3 |
20.0 |
5.9 |
Affin-UOB Securities Sdn Bhd
www.affin-uob.com.my
Email: research@affin-uob.com.my