YTL Corp Sees Hidden Value Amid Infrastructure and Data Centre Growth

YTL Corporation Berhad has reaffirmed its strong growth outlook, with analysts maintaining a BUY recommendation and an unchanged target price of RM3.44. The group is well-positioned to benefit from Malaysia’s infrastructure upcycle, alongside strategic ventures into data centres and renewable energy through its utilities division. Its cement and building materials arm also stands to gain from robust construction demand, particularly with projects tied to the Johor-Singapore Special Economic Zone (SEZ).

Data Centre Growth

During a recent investor briefing, management highlighted that YTL’s stock remains undervalued, with the market overlooking its unlisted entities and extensive landbank. Examples include Sentul land valued at RM1.25 billion, Brabazon in the UK with a GDV of GBP6.5 billion, and Niseko in Japan worth up to RM900 million. In Johor, YTL’s 1,700-acre landbank, including a 500-acre data centre campus, is increasingly strategic as demand accelerates.

The group’s cement division is set to strengthen further through its acquisition of CEPCO, integrating precast platforms and expanding its ecosystem. Meanwhile, its construction arm, SPYTL, holds an order book of RM5 billion with a tender pipeline of RM20–25 billion. Assuming a conservative win rate, this could add RM2.5 billion in new projects.

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