Various research houses remain positive on YTL Power International, with RHB Investment Bank Bhd, Hong Leong Investment Bank Bhd and MBSB Investment Bank Bhd maintaining BUY calls while CIMB Investment Bank Bhd upgraded the stock to BUY.
Target prices range from RM5.98 to RM7.58, with the calls underpinned by growing optimism over its data centre expansion.
RHB Research said YTL Power’s FY26 earnings of RM1.9 billion were broadly in line with its forecast but above market expectations, with the data centre segment emerging as a key growth driver. The division contributed RM244 million in profit before tax in 4QFY26, sharply higher from RM59 million in the previous quarter as 150MW of contracted capacity ramped up utilisation.
The research house expects another 200MW of data centre capacity at YTL Power’s Kulai park to be completed by June 2027, while the newly acquired Sedenak Tech Park land could allow the group to ramp up capacity by 400MW annually. RHB said its higher target price reflects stronger expected data centre margins.
MBSB Research also highlighted the acceleration in data centre earnings, with 4QFY26 revenue nearly eight times higher year-on-year at RM459.4 million and profit before tax reaching RM244.6 million. It said the initial 145-acre Sedenak parcel could accommodate up to 1.2GW of capacity, significantly above its earlier estimate.
HLIB raised its valuation for the data centre operations after YTL Power lifted its strategic target to 2.4GW, while CIMB said the developments have increased its confidence in faster contracted capacity growth. CIMB now expects around 1.1GW of live capacity by FY31.
As of 9.50 am, the stock price gained 3.88% to RM5.36.
