Wednesday, August 30, 2017

YTL Power International #12 - YTL Power 4Q net profit almost halves, pays 5 sen dividend

Hoosier's note: When I fisrt talked about YTL Power being my #1 pick, I mentioned that it had paid a dividend of 10 cents per share for the previous 3 years and I believed that YTL Power would be able to continue paying the same dividend.

However, given that YTL Power has been facing some headwinds in the Power Generation business, both in Malaysia and Singapore, and that fact that Mr Francis Yeoh is looking at opportunities to acquire new assets, I had lowered my dividend expectation to 8 cents per share--for this year.

YTL Power's Mobile Broadband Network business has continued to narrow its losses and, hopefully, this segment can start to provide positive contribution towards YTL Power's bottomline in the next financial year. In fact, I sincerely think that the Mobile Broadband Network is potentially a very valuable asset.