Thursday, May 14, 2026
Sunday, April 26, 2026
YTL Power International #101 - I asked Gemini "After the YTL Power Data Centre IPO, is it better to keep the shares of YTL Power or the shares of the Data Centre business?"
Gemini answered:
Deciding whether to hold YTL Power International (YTLP) or its newly listed Data Centre (DC) business depends entirely on whether you are prioritizing steady income or aggressive growth. Both represent different layers of the same ecosystem, but their risk-return profiles will likely diverge once the listing occurs.
Here is a breakdown to help you weigh the two options:
1. YTL Power (The Parent): The Balanced "Utility+" Play
Holding YTLP is a play on the entire group's infrastructure portfolio. As the parent, YTLP will likely retain a majority stake in the DC business, meaning you still benefit from the DC's success through YTLP's consolidated earnings.
Diversified Cash Flow: You aren't just betting on data centers. You have the defensive earnings from Wessex Water (UK) and the power generation margins from PowerSeraya (Singapore).
Dividend Stability: Historically, YTLP uses its diversified income to sustain dividends. If you are looking for that RM0.04–RM0.06 quarterly payout (or the projected growth through 2030), the parent is generally the safer harbor.
Holding Company Discount: One risk is that the market often applies a "conglomerate discount" to parent companies, meaning YTLP’s share price might not rise as sharply as the DC subsidiary even if the DC business performs exceptionally well.
2. The DC Business (The Subsidiary): The Pure Growth Play
This is a focused bet on the AI-driven infrastructure boom. This entity will hold the Johor Green Data Centre Park assets and the Nvidia AI infrastructure partnerships.
Higher Valuation Multiples: Data center stocks (especially AI-linked ones) typically trade at much higher Price-to-Earnings (P/E) or EV/EBITDA multiples than traditional utilities. This offers higher potential for capital gains.
Direct AI Exposure: If your goal is to capture the "re-rating" of YTL from a utility company to a tech infrastructure powerhouse, the subsidiary provides the "purest" exposure without the "drag" of legacy utility assets.
Capital Intensive / No Dividends: Expect this entity to reinvest every cent of profit back into scaling capacity (aiming for that 1,000MW target). It is unlikely to pay significant dividends in its early years post-IPO.
Comparison Table
| Feature | YTL Power (Parent) | Data Centre Business (IPO) |
| Primary Goal | Income & Stability | Aggressive Capital Growth |
| Risk Profile | Lower (Diversified) | Higher (Concentrated/Execution risk) |
| Dividend Potential | High (Utility cash flows) | Low (Reinvesting for expansion) |
| Market Valuation | Utility multiples (Lower) | Tech/DC multiples (Higher) |
| Exposure | Water, Power, Telco, & DC | Pure AI & Data Centre Infrastructure |
Often, when a parent company spins off or lists a "star" subsidiary, the parent’s share price sees a one-time jump as the "hidden value" of that subsidiary is finally quantified by the market.
If you hold YTLP: You may benefit from this re-valuation and continued dividends.
If you switch to the DC stock: You are betting that the specific AI-DC sector will outperform the broader utility market over the next 3–5 years.
The Middle Ground: Many investors choose to keep their YTLP shares for the "floor" provided by the utility earnings and dividends, while using the IPO as an entry point to add a smaller, more aggressive position in the DC business specifically for the AI upside.
Saturday, April 04, 2026
Friday, April 03, 2026
The "Market Explorer" Tool
The "Market Explorer" tool is generated by the FREE version of Gemini 3 but Human gives ideas to AI.
Market Explorer
SGX • BURSA • HKEX
⚠️ High Yield Warning: Yields above 7% may indicate a "value trap" or a recent sharp drop in share price. Always verify dividend sustainability.
Adjust filters and click search to view results.
The Operational Oracle
Saturday, March 28, 2026
Sunday, March 22, 2026
YTL Power International #99 - I asked Google's NotebookLM...
I asked Google's NotebookLM the question "Why does the EPF keep buying the shares of YTL and YTL Power?"...
NotebookLM generated the following text,
"These reports detail the strategic expansion and financial performance of YTL Power International, highlighting its significant transition into artificial intelligence and digital infrastructure. The company has successfully launched Ilmu, Malaysia's first indigenous large language model, and completed a high-tech data centre in Johor powered by Nvidia technology. Financial analysts maintain a positive outlook, noting that the Employees Provident Fund has consistently increased its stake in the firm to over 10% as a sign of institutional confidence. Beyond technology, the group continues to see robust earnings from its traditional utility assets in Singapore and the United Kingdom, alongside new ventures into digital banking. Furthermore, the parent company, YTL Corp, is actively optimizing its portfolio by divesting portions of its cement business and eyeing new acquisitions in the hospitality sector. Collectively, the sources portray a diversified conglomerate successfully pivoting towards sovereign AI and sustainable long-term growth."
and these slides,
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