YTL Power - reversal of fortune? TA target RM2.15

TA came out with a roaring report for YTL Power with a target price of RM2.15.

They expect the share buyback to continue which in my opinion will benefit its warrant more than its mother share.

I wasn't too pleased with this quarter's result, because:

1) One million has been thrown around as a magical number for YES breakeven but at one million subscriber they are still losing money.
2) Weakness in power seraya due to excess capex
3) Losses at the investment holding level without much details

I am glad that a research house have came out with a higher price target than I personally have, but I still think the investment is worth holding on to due to:

1) Attractive valuation backed by strong operational cashflow from long term concession like business.
2) Potential catalyst from the launch of LTE giving them a fighting chance of being a full fledged telco. I always like to compare the market cap of Maxis of approx RM51.8B today against RM10.5B of YTLP. I believe YES with LTE will be a serious competitor in the marketplace.

I am not too fuss about the IPP front as I see 1MDB as being a player with significant market advantage in its bidding. I will be pleasantly surprised if 1MDB doesn't win the next IPP project too.

Singapore Bank vs Regional Bank: PB/ROE (2014 F)

Interesting Chart - slightly out of date (clipped around Jan 2014) but still interesting.

YTL Yes to be profitable soon?

According to an article by Malay Mail online, YTLP's YES have:-

- over a million in subscriber with healthy ARPU
- will be making announcement on its LTE roadmap in the near future
- upgrading to LTE is simple, all they need to do is to plug in a "channel card"
- they've designed the network with this upgrade in mind

They have long toyed with the one million number as the magic break-even point but at a million subscriber they are still losing money. I can't wait till this LTE roadmap announcement.

http://www.themalaymailonline.com/tech-gadgets/article/ytl-comms-to-be-profitable-soon

China Stationary - Fire and delayed audited account

The company is last trading at 0.13, 0.08 (38%) below my exit price on February 9th.

At this price the company still have a market cap of RM 160M, yet it supposedly hold over RM1B in cash at bank.

I wish investor in the company a big good luck.

A detailed commentary on the recent fire and delayed audited account has been written here