Highlights of the day
After a lackluster performance in CY11, YTL Corporation’s stock hit an
inflexion point at the start of this year, fuelled by the positive response
from investors towards the recent privatisation of its subsidiary YTL Cement
Bhd, which led to improved free float of YTL Corp shares and an increase in the
stock’s weightage on the MSCI Asia ex-Japan Index to 2.2%. From a recent
meeting with the management, we gather that it is in YTL Corp’s long-term
agenda to progressively increase its stake in its key operating subsidiaries
such as YTL Power International Bhd and possibly take some of them private. The
key rationale behind this is to step up YTL Corp’s annual dividend inflow from
its subsidiaries which would allow more room for the company to give more
generous dividend payouts. Initiate coverage on YTL Corp with a BUY call and
potential sum-of-parts target price of RM2.44.
Other reports
Other Malaysian news
§ MMHE:
Clinches RM278m
Sarawak Shell contract
§ WCT: Meydan
counterclaims RM3bn from WCT-Arabtec JV
§ Maybank: Ceased to be substantial shareholder of Luster
§ Axiata: New plan
expected to boost Celcom's user base
§ Maxis: Signs strategic partnerships to deliver IPTV service
§ Tan
Chong: MD resigns
§ IJM: To appeal
NPE decision
§ AirAsia:
Virgin Atlantic exits AirAsia X
§ TSH: Proposal
will create millionaires in PUPB
§ Kurnia: Undecided on
utilisation of RM1.6bn cash pile
§ Integrax: Big plans for Lumut
§ Masteel: Signs RM500m deal with Trafigura
§ Digistar: Moving to main board today and to start new ops
§ Scomi Group: To tender US$1bn O&G contracts next year
§ Guan
Chong: Gets SGX nod for listing prospectus
§ APH: Project to
be tendered out
Global news
§
US
§ US
§ Europe: Merkel
shuts door to euro bonds in rebuff to Rajoy on Spain
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