PETALING JAYA: A blockbuster external project could be the missing catalyst for YTL Corp Bhd
to narrow its widening market capitalisation gap with subsidiary YTL Power International Bhd, according to CGS International (CGSI) Research.
In just over three years, YTL Corp has gone from being marginally larger than YTL Power by market value to trailing it by more than RM18bil currently.
YTL Corp has a controlling stake in YTL Power. Both are listed on the Main Market of Bursa Malaysia.
CGSI Research said YTL Corp has yet to capitalise on any large external infrastructure projects from its RM10bil-RM15bil tender book. However, it is still in the running for the Penang LRT systems, rail bridge from Penang Island to mainland and other overseas rail/metro projects.
The research house also added that YTL Corp’s deep intrinsic value is reflected in the negative residual value of its unlisted business of RM2.9bil.
CGSI Research said YTL Corp’s FY26 core net profit of RM1.61bil, which was down 16% year-on-year, was within expectations. It has maintained its “add” call on YTL Corp, given the deep value of its unlisted businesses. The target price remains at RM3.19 per share.
