the selldown should be the "worry" over the upcoming power agreements review and speculation over reasons for cut in dividends. it's affecting the mothershare YTL also, i've never seen YTL valued so relatively cheaply in about 2 years.

but i think it should be a breeze through. Seraya's doing good, the singapore side is ok, wessex water turned out to be a good cash calf when the forex stabilised.

div yield, last financial year was 3.75 + 3.75 + 1.875 + 3.75 = 13.125 sen / 2.30 = about 5.7 %.

current 4-qtr trailing DY is 11.25 sen (3.75 + 3.75+ 1.875 + 1.875) / current price 1.95 = 5.7% . (what a surprise! )

for it to trade at 5.5% valuations, assuming next quarter another payout of 1.875 sen, total for year will be 9.375 sen. 9.375/0.055 = RM1.70 valuation based on dividend yield premium of 5.5%. if it were to pay 3.75 sen instead of 1.875 sen, then full year valuations will maintain at 1.95 based on 11.25 sen (instead of 9.375 sen) - and a dividend premium of 5.7%





that's my opinion..

This post has been edited by teehk_tee: Jul 30 2011, 10:24 AM

sounds bleak yeah.. but i leave the judgement to everyone.
PER at 1.70 will be 10.2 vs current PE around 11.2

and expected full-year ROE if im not mistaken, if we use EPS growth of 10.8% and extrapolate the current 3Q results and set it at 1343mil / 8157mil = a respectable 16.5% in my books.

regardless, i'll wait for the power agreements to pass before i decide, since it's quite a 'hot' issue.

This post has been edited by teehk_tee: Jul 30 2011, 11:01 AM

YTLPWR's dilemmas are discussed in the previous page, with a wide range of explanations and valuations given.. generally cut in dividends, and IPP problems. it's miles away from Naim imo, things under the Francis Yeoh banner are generally stable-r .

not to mention their other divisions are doing good.. can take my words with pinch of salt..