Skidd, thanks

KUALA LUMPUR: RAM Ratings says YTL POWER INTERNATIONAL BHD []'s (YTLPI) move to roll out its RM2.5 billion worldwide interoperability for microwave access (WiMAX) network is quite unexpected.  The rating agency said on Thursday, March 11 this was not in line with its track record of investing in long-term concession assets with stable and sustainable cashflow.  "Although RAM Ratings is less sanguine about the group venturing into a non-concession-based business, we note that YTLPI’s power and water concession assets will remain its major cashflow contributors," it said.  YTLPI's subsidiaries are in power generation, water and sewerage services, electricity transmission and telecommunications.  The ratings agency said while the group will be viewed to have a more aggressive risk appetite if it deviates further from its strategy of only investing in concession-based utility and infrastructure assets, "we note that the management has been circumspect in its investment decisions and has demonstrated good acumen in business execution thus far".  RAM Ratings, meanwhile, reaffirmed the AA1 ratings of YTLPI’s RM2 billion commercial papers/medium-term notes programme (2007/2014) (CP/MTN) and RM2.2 billion serial redeemable bonds (2008/2013); long-term ratings have a stable outlook.  It also reaffirmed the P1 rating of the YTLPI’s CP/MTN. The ratings remain supported by the group’s robust business profile stemming from its regulated asset base, particularly its investments in power and water-sewerage services via its unit YTL Power Generation Sdn Bhd (YTLPG) in Malaysia, PowerSeraya Ltd (PowerSeraya) in Singapore and Wessex Water Ltd (WWL) in the United Kingdom (UK).  In this regard, WWL has maintained its position as one of the most efficient water and sewerage-services companies in the UK. At the power-generation end, YTLPG has been able to achieve an availability level of around 90% for the past six years; PowerSeraya exhibits a strong operating performance, underscored by its availability of about 88% as at end-March 2009.  "Nonetheless, the group’s capital structure remained constrained by its hefty debt burden of RM22.92 billion as at end-December 2009, with a corresponding net gearing ratio of 2.02 times. However, most of these debts are parked under core subsidiaries that generate stable cashflow," it said.  RAM Ratings said YTLPI had healthy debt-protection measures; its company-level adjusted operating cashflow debt coverage (OCFDC) ratio was 0.28 times as at end-June 2009.  Based on RAM Ratings’ cashflow analysis, YTLPI’s OCFDC ratio is projected to range around 0.17–0.25 times throughout the tenures of YTLPI’s debt issues.

Bond issuers if I am not mistaken get a fixed return when they are due after X number of years. I don't think they are affected by Div allocations or issue bonds based on past and future div.

Just a layman's view. Maybe a bond expert can clarify.

Mat bond, James bond any one out there?

So maybe when the bonds are due the price may be pushed higher in order to pay fewer shares to the bond issuer. 

By the way, are you concerned by the falling pound and Sing dollar.

Live rates at 2010.03.21 21:53:03 UTC
1.00 GBP = 4.95143 MYR
United Kingdom Pounds    Malaysia Ringgits 
1 GBP = 4.95143 MYR   1 MYR = 0.201962 GBP

End of current quarter is a few days away and it is already down 10% from end of last quarter.

Sing dollar last quarter was at 1.00 SGD = 2.4401 MYR

Live rates at 2010.03.21 21:58:03 UTC
1.00 SGD = 2.36236 MYR
Singapore Dollars    Malaysia Ringgits 
1 SGD = 2.36236 MYR   1 MYR = 0.423306 SGD

WESSEX Water Ltd is expected to start work on the ambitious project of rehabilitating the highly polluted Klang and Gombak Rivers in Selangor and treating the water to make it safe for drinking at the latest by early next year.  The RM15 billion project will span 15 years.  Wessex Water is a veteran in water treatment and sewerage services, and first made its name in southwestern England.  It made a successful joint bid with information technology (IT)-based property developer I-Berhad for a portion of the entire project and will be working in the lower reaches of the Klang River, between Puchong and Shah Alam. Two other successful bidders - TSS-Mako Engineering Sdn Bhd and GJA Engineering and Construction - will work in the upper reaches of both rivers.  Wessex Water managing director Gareth Jones said the company received a letter of appointment from the state government recently.  He said its portion of the project will cost between RM400 million and RM600 million, depending on where the state government wants to locate the water treatment plant, among other considerations.  Wessex Water will use methods similar to those it applied to projects in Argentina and Mexico where water from rivers was supplied for consumption after undergoing comprehensive treatment processes.  The company, headquartered in Bath, England, is a subsidiary of YTL Corp Bhd.  News of the successful bid came close on the heels of the YTL group's results for the six months ended December 31 2009. It saw pre-tax profit increase 20 per cent to RM1 billion on a 134 per cent jump in revenue to RM7.9 billion compared with the previous corresponding period.  Wessex Water partner I-Berhad, meanwhile, has been making significant progress in its flagship IT property venture, I-City. The 30ha RM2 billion project boasts of 20Mbps broadband speed, comprehensive fibre optic network and back-up power supply.

recently the currency rate reli bad,both pound and sgd
no comment with this Q's result hope still can maintain 3.5sen(diluted eps)
if this year eps around 14-15sen
PE also around 15-16 already
so i think that the share price will still maintain 2.19 +/-
oh ya, juz now i check at klse, y got a WR ar?
wat lai de? reli dunno when got this thing de~haha

I think YTL-Power can easily hit 3.00 with the reason it is cash rich and also they are launching the new Wimax service.

P1? juz beat them with faster and stabler newtowrk access and wider network coverage~ this is all we need a a wireless user mah~
the preparation took so long time...one Q finished...
hope the outcome not dissapoint us

YTLpower doesn't involve directly in Wimax.

Also I don't think Wimax is a profitable business. Any company that success to make a breakeven point in Wimax business in Malaysia is considered a success already, not yet talking about profit.

Can see from recent P1's financial result recently. 

Too many competition and too small market locally for broadband providers. The problem is to launch a broadband nationwide, it is a capital intensive project while profitability wise is somehow difficult to project, as consumer only demand for lower monthly charge and faster broadband speed.
And with Unifi come into market, it make Wimax even has more competition.

But this is definitely good for consumer.

YTL Power will spend RM 2.5b on Wimax project, if you say they invest RM 2.5b just to avoid 1mil penalty??? It sounds funny, and MCMC has also hold back the penalty already.

You cannot compare YTL with P1... P1 is only a small ant.... YTL is going after the big boys...

Watch this counter... will shoot up soon.

You think YTL's wireless service will sweep the incumbents off their feet?

YTLPOWER lai liao....     

Already banked in. 

Business will not be profitable if they target mass market with competitive price....

Business will be profitable if they target high end market with premium price...

China might raise their interest rate any time and hence will strengthen their currency against USD and Pound . I am afraid that ASIA might follow suit hence pound might going down further against RM.

YTL POWER should try to acquire quality assets at US with loans. If the USD HAPPENED to drop further they can convert RM to USD to pare down their borrowings.

With the stronger ringgit, the opportunities are really good.

KUALA LUMPUR: The Employees Provident Fund stepped up its purchase of YTL POWER INTERNATIONAL BHD [] shares with the acquisition of 8.5 million shares from March 31 to April 2.

Filings with Bursa Malaysia showed the EPF acquired four million shares on March 31 and another four million shares on April 1. It bought 500,000 shares on April 2.

After the recent acquisitions, its shareholding was increased to 662 million shares or 9.5%.

YTL Power's share prices closed at RM2.19 on March 31 and RM2.17 on April 1 while it ended the day at RM2.19 on April 2.

The latest analyst report was on March 31 when RHB Research had a market perform with a target price of RM2.12. Hwang DBS Vickers Research had a Hold with a target price of RM2.30 on March 31.

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Added on April 9, 2010, 4:03 pmWhy EPF bought so much?????????

WHY WHY WHY??????????

Wakkakakakakakakaka

Our electricity price going UP UP UP???????

Actually for GBP and SGD to be lower is a good thing for YTLPOWER if you look at other side of the coin, since their loans and repayments will also be translated to a lower amount.

today got ppl queue at 2.24, wanted to sell for more than 6M
who so lack of money? haha~

Opps...sorry forget mention about nominee
but start from sep all company using online payment rite?
that time will charge compulsory?