Bloomberg - YTLP:MK
Yahoo - 6742 .kl
Webpage - http://www.ytl.com/
Company
Profile
YTLPOWR
had three business segments as follows:
1) Multi
Utilities Business (Merchant) – 55.0% of 2016 revenue
2) Water
and Sewerage – 32.4% of 2016 revenue
3) Mobile
Broadband Network – 6.8% of 2016 revenue
1) Multi Utilities
Business (Merchant)
55.0%
of YTLPOWR revenue come from these segments. YTLPOWR operated 3,100 MW of
installed capacity comprised of steam turbine plants, combined cycle plants and
co-generation combined cycled plant in Singapore. Besides selling electricity,
YTLPOWR able to receive additional incomes from the sales of the by-product of
the plants; steams and portable water. There are more new entries of
electricity retailers in Singapore had make the retail electricity sector very
competitive.
YTLPOWR
power purchased agreement in Malaysia had completed in September 2015 and now
only awarded project to supply power from Paka Power Station on short term
basic.
Besides
Singapore and Malaysia, YTLPOWR also owned partial of power plant company in
Indonesia and Austrialia.
YTLPOWR
had two power plant in the development stage and had power purchase agreement
for over 30 years after completion of projects. The two projects are 2 x 660MW
coal plant in Indonesia and 554 MW oil shale-fired plant in Jordon. The Jordan
plant is planning to operate in 2017.
PROS:
|
è Able to sells the by-product of
the plants to provide addition income to YTLPOWR.
è YTLPOWR is developing 2 power
plants which will provide income stream for the next thirty years if
completed.
|
CONS:
|
è
Addition
new entries of electricity retailers to Singapore had make the retail
electricity sector very competitive.
è
Power purchased agreement in Malaysia
had competed in September 2015
|
2)
Water & Sewerage
YTLPOWR had a wholly
owned subsidiary, Wessex Water Limited, operate water & sewerage business
in UK. Wessex Water Limited serving 2.8 million users in southwest, England. In
1 April 2015, Wessel Water’s regulator (Ofwat) implement price controlled for
the water supply until 2020. Wassex Water Limitted also having assistance
programme to support customer who are financially vulnerable.
CONS:
|
è
Price
controlled had implemented for five years from 1 April 2015. This might
reduce the profit margin for Wessex Water Limited
è
Provide assistance programme to support
customer who are financially vulnerable reduce the revenue
|
3)
Mobile Broadband Network
YTL Communication Sdn
Bhd, 60% owned by YTLPOWR is the first to launched VoLTE (Voice over LTE) in
Malaysia in June 2016.
Financial
Statement
YTLPOWR had RM
8,077,220,000 Intangible asset or in other word goodwill. Goodwill is recorded
when the company use higher cost to purchase another company. Goodwill is
review by the management yearly and is impaired when the goodwill is not
applicable anymore.
Besides that YTLPOWR
had increase in the inventories from RM 440,418 to RM 805,902,000 the increase
to the inventories is due to development land of RM 365,281,000 for acquisition
of land at Filton Airfield, Bristol.
The receivable,
deposits and prepayment had also decrease from RM 2,292,926,000 to RM 1,723,420,000
the decrease of receivable is main due to collection of receivable which had
past due as receivable past due had decrease from RM 830,182,000 to 457,217,000.
YTLPOWR had SGD
697,396,258 or RM 2,079,356,683 revolving credit and SGD 757,173,077 or RM 2,257,587,246
unsecure term loan to be paid fully on 14 September 2017. Besides that YTLPOWR
has GBP 140,000,000 or RM 754,740,000 unsecured term loan had to paid in full
on 15 December 2018. YTLPOWR had many borrowings and bonds in foreign currency.
They are USD 600,000,000, GDP 1,799,148,689 and SGD 2,269,987,107.
The post employement
benefit obligations has increase from RM 743,365,000 to RM 874,272,000 main due
to the increase in defined benefit plan in United Kingdom from RM 734,028,000
to RM 861,832,000.
PROS:
|
è Account receivable past due had
decrease from RM 830,182,000 to RM 457,217,000
|
CONS:
|
è
RM 8,077,220,000 intangible asset.
è
YTLPOWR had huge amount of borrowings
and bonds in USB, GDP and SGD.
è
YTLPOWR had Define benefit plan for
employee in Indonesia and United Kingdom.
|
Director
and Shareholder
YTLPOWR mostly owed by
Tan Sri (Dr) Yeoh Tiong Lay and his family. YTL Corporation Bhd owned 47% of
YTLPOWR. Tan Sri (Dr) Yeoh Tiong Lay indirectly owed 63% of YTLPOWR.
Warrant
Annual report 2016
shown that there are still 152,792,175 warrant not excise, The warrants can convert
into ordinary share of RM 0.50 par value any time between 2008 / 2018.
CONS:
|
è
Once the warrants is excised. The share
will be dilute.
|