Friday, November 18, 2011

YTL Power International RM1.80: Buy

Look to M&As for the next catalyst
 
Conserving cash for M&As? YTL Power International’s (YTLP) 1QFY12 results were within expectations. While we had hoped that 1QFY12 DPS would revert to 3.75 sen tax exempt, it remained subdued at 1.875 sen tax exempt. That said, 1.875 sen tax exempt still offers a decent 4.2% net dividend yield on an annualized basis that will help limit downside risk. Maintain Buy and DCF based TP of RM2.02. We understand that YTLP may embark on a major M&A soon.


Maybank research (18 November 2011)

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