1) FY apologised for comment on cronyism
Apparently he was quoted out of context.. but despite his lack of conviction, I believed he touched on some important point in his original talk but I guess he must be a realist since YTL is pivoting their focus from offshore to onshore in the coming 2-4 years given the global asset bubble and the local ETP.
I still have much respect for him and his management team and I believe the valuation ascribed to the YTL group of company is very undemanding.
YTL - Growth At Reasonable Price
Company in the utility industry (my focus on YTLP) is usually given a premium valuation relative to the overall market given its secured long term cashflow with an implied inflation hedge.
An example of the valuation would be the Utility Select Sector SPDR ETF, this ETF of the S&P utilities sector have a PE of 16.53 and PB of 1.65x.
I do feel strongly about the quality of asset held under the YTL group. They are world class company capable of competing internationally and they are also strong cashflow generator for its shareholder.
Somehow in the last few years they have reduced their dividend payout policy to conserve its cashflow. This caused investor with a dividend bias to flee the counter resulting in a severe drop in market value over the last three years.
However if you are like me, a longer term investor, I believe they are conserving the cashflow for growth. And YTL in the last few years have transformed into a company worthy of a place in one's long term portfolio because they offer "Growth At Reasonable Price".
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