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YTL Power International Berhad Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Updated: 01-11-2024, 11.21 PM

YTL Power International Berhad (KLSE:YTLPOWR) defied analyst predictions to release its yearly results, which were ahead of market expectations. Results were good overall, with revenues beating analyst predictions by 2.3% to hit RM22b. Statutory earnings per share (EPS) came in at RM0.42, some 7.6% above whatthe analysts had expected. Earnings are an important time for investors, as they can track a company’s performance, look at what the analysts are forecasting for next year, and see if there’s been a change in sentiment towards the company. With this in mind, we’ve gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for YTL Power International Berhad

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Following last week’s earnings report, YTL Power International Berhad’s ten analysts are forecasting 2025 revenues to be RM22.1b, approximately in line with the last 12 months. Statutory earnings per share are forecast to sink 11% to RM0.37 in the same period. Before this earnings report, the analysts had been forecasting revenues of RM22.5b and earnings per share (EPS) of RM0.38 in 2025. So it looks like there’s been a small decline in overall sentiment after the recent results – there’s been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at RM5.22, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. There’s another way to think about price targets though, and that’s to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on YTL Power International Berhad, with the most bullish analyst valuing it at RM6.39 and the most bearish at RM4.00 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await YTL Power International Berhad shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 0.8% by the end of 2025. This indicates a significant reduction from annual growth of 19% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 4.6% annually for the foreseeable future. It’s pretty clear that YTL Power International Berhad’s revenues are expected to perform substantially worse than the wider industry.

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