YTL Corp’s Third Quarter Sees 20% Surge in Net Profit Driven by Increased Contribution Across All Business Segments

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YTL Corp’s net profit rose to RM496.23 million from RM414.14 million, despite revenue decreasing to RM7.21 billion from RM7.33 billion, according to Thursday’s filing.

KUALA LUMPUR, 24th May 2024 – YTL Corp Bhd reported a 19.8% rise in net profit for its third financial quarter ending March 31, 2023 (3QFY2024), driven by increased earnings across all its business segments, including construction, cement and building materials, property investment and development, management services and others, hotels, and utilities.

According to YTL Corp’s bourse filing on Thursday, the quarterly net profit increased to RM496.23 million from RM414.14 million the previous year, even though revenue slightly declined by 1.7% to RM7.21 billion compared to RM7.33 billion.

The conglomerate’s primary contributors were its utilities segment via the publicly traded YTL Power International Bhd (KL:YTLPOWR), in which it holds a 49.08% direct and 6.49% indirect stake, and its cement and building materials segment through its 78.58% indirectly owned subsidiary, Malayan Cement Bhd (KL:MCEMENT), or MCement.

YTL Corp attributed the increased profit in the cement segment primarily to the stabilization of selling prices for both domestic cement and ready-mixed concrete, along with ongoing improvements in operational efficiencies.

MCement reported a 60% rise in net profit for 3QFY2024, reaching RM101.24 million compared to RM63.28 million the previous year, with revenue growing by 10.9% to RM1.10 billion from RM990.71 million.

MCement announced an interim dividend of four sen per share, to be paid on June 26, having not declared any dividend in the same quarter last year.

The hotel segment, managed through YTL Hospitality REIT (KL:YTLREIT), in which YTL Corp holds a 55% direct and 3.63% indirect stake, also saw a rise in revenue and net profit. This growth was primarily due to an increase in market share and overall higher occupancy and room rates across all hotel properties.

Separately, YTL REIT reported a 35.5% year-on-year increase in net profit for 3QFY2024, reaching RM33.73 million compared to RM24.89 million, with revenue rising by 17.1% to RM148.59 million from RM126.90 million.

For the first nine months of FY2024, YTL Corp’s net profit nearly tripled to RM1.61 billion from RM547.67 million in the same period of FY2023, while revenue increased by 9.1% to RM22.26 billion from RM20.41 billion.

Regarding its future outlook, YTL Corp anticipates that cement demand will remain robust, mainly fueled by the civil and non-residential sectors such as infrastructure, logistics, facilities, data centers, and factories. “Despite ongoing economic volatility due to inflationary pressures and geopolitical uncertainties, the group will persist in enhancing its operational, logistics, and distribution efficiencies.”

YTL Corp expressed its enduring confidence in the future of the hospitality industry, despite facing immediate hurdles. “As regions where the group operates gradually return to normalcy, and with a more gradual approach to interest rate increases, the hospitality sector is anticipated to sustain a generally optimistic outlook, notwithstanding the risks posed by geopolitical uncertainties and other economic obstacles.”

YTL Corp’s shares concluded Thursday’s trading session higher by six sen or 1.57% at RM3.88, resulting in a market capitalization of RM42.88 billion. In contrast, YTL Power closed lower by 12 sen or 3.08% at RM3.78, with a market capitalization of RM30.83 billion.

MCement’s shares closed higher by 13 sen or 2.49% at RM5.35, valuing the company at RM7.06 billion.

YTL REIT’s units saw a slight increase of one sen or 0.82% to close at RM1.23, resulting in a market capitalization of RM2.10 billion.

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