Although recent YTL Power quarter result was nonetheless a bit disappointing, it is in my opinion a give and take situation given the reduced reliance on the contribution of operational profit in Malaysia. Frankly speaking, there are too many factors that may shake the entire economics fundamental of this developing country and those are not something that can be resolved by passing a bill or getting rid of some political party. Venezuela's President Hugo Chavez able to ride through waves of critism and face detrimental challenges from his opponents, even though his own intentions are doubtfully genuine. He got the charism and strong voice. Deterministic of wills show the capability of one's leadership.
Pardon me, but I see no corresponding in any of the governing party leaders at this point of time. They are simply too reactive and slow in reacting to persisting issues regardless of whether it is political, social or economy. The portray of Dr. M is truly deep inside the mind of the common. Do we still need Dr. M .. literally? No I say. He is way passed his retirement age, give him a break. We DO need someone who is visionary and with inviolatable ruling direction that give pressures to external forces rather than pushing the limit on his own people.
Ok, back to YTL Power. The intention to raise gas, electricity and petrol tariffs is here for sure. Since the price pressure will be passed back to back to consumer, no significant negative material impacts to YTL Power earning shall be foreseen. Earnings from Wessex UK will be increased in next few quarters given the changes in their tariff.
What I'm more interested in still the same old questions: When the shopping will begin? Acquisitions are imminent.
I reiterated my estimate towards YTL Power fair price at RM3 in 3 month time.
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