YTL Corporation Berhad Shares Down 26% YTD – What Comes Next?

YTL Corporation Berhad, one of Malaysia’s most prominent infrastructure conglomerates, has experienced a turbulent year on the Bursa Malaysia. Today has followed that same pattern, with YTL’s share price closing at MYR 1.94, a 3% drop from the previous session.

Despite a bounce over the past month of trading that has seen the stock gain 8.99%, YTL remains firmly red both on a YTD (-26.79%), and 12 month basis (-41.92%).

From a technical perspective, YTL's current share price sits above its 50-day moving average (MYR 1.94) but below its 200-day average (MYR 2.50), suggesting a period of consolidation. Looking at the chart, and support can be found in the MYR 1.70 range, potentially setting a floor. The Relative Strength Index (RSI) at 35.21 also indicates the stock is nearing oversold territory, potentially setting the stage for a technical rebound if fundamentals align.

Operational Improvements and Outlook

Fundamentally, YTL’s financials are improving. The company reported a 4% increase in revenue to RM8.06 billion for the second quarter of FY2025, with profit after tax surging 57% quarter-on-quarter to RM1.0 billion. This growth was driven by strong showings in its cement, property, and hotel segments, as well as significant unrealized foreign-exchange gains. Notably, its cement arm, Malayan Cement Bhd, delivered a 32% increase in profit after tax, even as domestic sales softened.

On the expansion front, YTL is making strategic bets on the future of infrastructure. Its RM1.2 billion solar energy initiative aims to generate 500 MW of renewable energy by 2025, while the YTL Green Data Center Park in Johor signals a bold move into Southeast Asia’s burgeoning digital infrastructure sector. These projects are expected to drive long-term revenue growth and diversify the group’s earnings base.

The utilities division, YTL Power International, also shone with a 51% quarterly profit boost, supported by stable operations in Singapore’s power generation and the UK water business. For the first half of FY2025, EBITDA held steady at RM4.7 billion, reflecting the company’s ability to sustain core operational strength despite macroeconomic challenges and sector-wide headwinds.

With a current market cap of MYR 21.55 billion, YTL trades at an attractive forward P/E of 9.06 and a price-to-book ratio of 0.88, both below historical averages.

However, tempered expectations for revenue and capital expansion, and the company’s debt-to-equity ratio of 2.13, alongside a high debt-to-EBITDA ratio of 3.44x, signals financial leverage risks.

What Comes Next?

Analysts forecast annual revenue growth of 13.5% for FY2025, with EPS set to grow by 7.8% annually over the next three years, lagging behind the broader market’s 13% projection. The upcoming Q3 earnings report, due May 23, 2025, can be expected to be a critical inflection point for near-term sentiment.

The company’s diversified portfolio, strategic expansion into renewables and digital infrastructure, and shareholder-friendly policies position it as a compelling value play. However, persistent leverage and sector-specific risks necessitate a balanced, patient approach.