KUALA LUMPUR: YTL Power International Bhd's core earnings of RM973.8 million in the fourth quarter ended June 30,2024 (Q4FY24) which boosted its financial year 2024 (FY24) earnings to RM3.4 billion came within Hong Leong Investment Bank's (HLIB Research) forecast of 103 per cent.
The firm noted the results came in above consensus' forecasts of 108.3 per cent.
HLIB Research added the improved earnings by 73.9 per cent to RM3.4 billion was driven by the substantially stronger contribution from PowerSeraya (on improved margins), and full year contribution from Attarat, while losses from UK Wessex and YesCom subsided.
On SG Seraya, HLIB Research noted guided spreads have been stable since early 2024 and management remains prudent in achieving contract ratio of 75-80 per cent for sustainable earnings.
Meanwhile, UK Wessex turned profitable in 4QFY24 and expected to sustain in FY25.
"Following recent ringgit appreciation and more details being provided for data centre
segment, we revised downwards FY25 earnings by 12.9 per cent t and FY26 by 3.4 per cent," it said.
The firm maintained a "buy" call on the stock with a target price of RM7.45.