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
(RM)

Year End

Pretax Profit (RM’m)

Net Profit
(RM’m)

EPS
(sen)

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

 

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