‘YTL results below expectations’

KUALA LUMPUR: YTL Corp Bhd’s net profit of RM362 million in the year ended June 30 is “uninspiring”, said Affin Hwang Capital.

Affin Hwang said the profit, which plunged 55 per cent year-on-year, was 61 and 67 per cent below the street and its full-year earnings forecast, respectively.

“The negative variances were largely attributable to weak performance from its hotel and property segment.

“YTL reported a RM43 million net loss in the fourth quarter, closing an uninspiring FY18 with a lower net profit of RM362 million and dividend of four sen,” it said in a report yesterday.

The firm added that the unexpected fourth quarter net loss was due to write down of inventories, fair value losses of

investment properties and foreign exchange (forex) losses.

“Overall, the results were below market and our expectations,” it said.

Affin Hwang said the negative one-off adjustments included RM120 million inventories write-down (Singapore property project), RM43 million loss in fair value of investment properties, RM52 million forex losses and RM26 million allowance for impairment.

Operationally, the utilities segment was YTl Corp’s star performance with robust fourth-quarter earnings before interest and tax of RM378 million, or 32 per cent growth year-on-year.

Affin Hwang has put YTL’s earnings forecasts, rating and target price under review.