KUALA LUMPUR: YTL Power International Bhd
continued to see a rise in its share price even as investors see compelling reasons to continue buying into its growth prospects.
Despite trading at a historical record, the company’s price to earnings valuations appeared to be compelling at 11.7 times compared with the FBM KLCI at almost 15 times.
The utility company closed yesterday at its historical high of RM4.79 with a 37 sen or 8.37% gain.
New growth prospects are anticipated from its recent venture into the growth sector of artificial intelligence (AI) space in its partnership with AI computing hardware and software maker Nvidia Corp.
The company’s formation of YTL AI Cloud last month will see it deploying and managing one of the world’s most advanced supercomputers on Nvidia Grace Blackwell-powered DGX Cloud, which is an AI supercomputer for accelerating the development of generative AI.
YTL AI Supercomputer is to be located in the data centre facility in the YTL green data centre campus in Johor and will be powered by a renewable energy source from its on-site 500MW solar power facility.In its recent report, Hong Leong Investment Bank Research (HLIB Research) said YTL Power is supported by the sustained earnings from its Singapore power generation unit – YTL PowerSeraya Pte Ltd and Attarat Power Co in Jordan.
Another catalyst is its water and sewerage service company in the UK, Wessex Water which is also expected to turn around in the fourth quarter of financial year 2024.
“We understand that YTL will be one of the first deployment of GB200 globally (given priority by NVidia), thereby resulting in strong demand for YTL’s AI infrastructure,” HLIB Research said.
The company saw strong foreign inflows of some RM70.4mil last week, according to MIDF Research’s fund flow report.
YTL Power currently trades at a market capitalisation of RM38.88bil.
