YTL Corporation Bhd

YTL (Fundamental: 1.2/3, Valuation: 1.2/3) was picked up by our algorithm as showing negative price momentum. The stock traded as high as RM1.79 yesterday, before closing 5 sen higher at RM 1.76, with 16 million shares traded.

The company invests in various businesses including power and water, cement manufacturing, property investment and development. In FYJune14, revenue totaled RM19.2 billion, down 3.8% y-y but pre-tax profit grew 22.3% to RM2.8 billion. The main earnings contributors were utilities, cement and property, including fair value gains on investment properties.

In the latest 1QFY2015, however, YTL’s revenue and pre-tax profit decreased 13.9% and 23.1% y-y, respectively. This was attributed, in part, to lower earnings from utilities on the back of lower units of electricity sold and weaker fuel oil trading business in Singapore.

The stock is trading at a trailing 12-month PE of 13.3 times. Dividends for the past 12 months totaled 10.5 sen, giving 6.1% yield.

This article first appeared in The Edge Financial Daily, on January 30, 2015.