KUALA LUMPUR: YTL Corp Bhd and subsidiary YTL Power International Bhd have shot up to the top 15 list of the FTSE Bursa Malaysia KLCI (FBM KLCI) constituents since their inclusion last December.
YTL Corp is now ranked 13th (from 24th) while YTL Power has fared even better at the 10th position (from 23rd).
YTL Corp holds a 55.6 per cent stake in YTL Power. On another note, Sunway Bhd could be a new entrant when the next semi-annual review of the 30-member FBM KLCI constituents is released on June 6, with the data cut-off date on May 27.
Sunway could replace AMMB Holdings Bhd, according to MIDF Research. The firm said Sunway's share price had seen a meteoric rise since Nov 23 last year, the cut-off date of the previous semi-annual review of the FBM KLCI constituents.
"It was trading at RM1.99 then, and was 38th in terms of market capitalisation (cap). Since then, its share price had risen 76.9 per cent to RM3.52 as of April 30, bumping it up to the 24th spot.
"While much can happen until then, should it maintain its position or drop to 25th, we believe that an inclusion in the barometer index is more or less guaranteed as it conforms to the free float and liquidity requirements."
If the rankings in terms of market cap remain unchanged until the cut-off date on May 27, AMMB would be in the lowest-ranked, said MIDF Research. As of April 30, AMMB had a market cap of RM13.89 billion and was ranked 33rd.
Directly ahead of it was Mr D.I.Y. Group (M) Bhd at 31st, with a market cap of RM14.74 billion.
MIDF Research said the reserve list of the FBM KLCI, which comprised the top five nonconstituents, was expected to see a slight change with the removal of Inari Amertron Bhd and the inclusion of AMMB.
"With the expected deletion of AMMB from the FBM KLCI constituents, we estimate that the anchor sector financial services may see a weightage reduction from 41.3 per cent currently to 39.61 per cent after the review.
"The most significant change will come from the industrial products and services sector, with a bump in weightage from 6.57 per cent to 7.87 per cent with Sunway's inclusion."
On YTL Corp and YTL Power, MIDF Research said the two stocks were the top two most liquid since last December.
"YTL Power and YTL Corp were ranked 23rd and 24th, respectively, on Nov 20 last year, leading to their inclusion in the December review. Both counters have performed well to date, further cementing their positions in the FBM KLCI," it added.
Analysts said there had been several encouraging developments for YTL Power in recent months. In January, the Energy Market Authority of Singapore granted YTL Power the right to construct a 600-megawatt (MW) hydrogen-ready gas plant, scheduled to be commissioned by the end of 2027, in an effort to ease the supply tightness in the market amid rising demand.
According to CGS International Securities Pte Ltd, this is a strategic move, providing replacement capacity for two plants that are approaching the end of their operational life spans.
Earlier in December, the company announced a collaboration with Nvidia to build an artificial intelligence data centre in its planned 500MW YTL Green Data Centre Park in Kulai, Johor.
CGS International said its initial calculations suggested that YTL Power's estimated RM22 billion investments in data centres over the next three to five years could contribute as much as RM1.2 billion to RM1.4 billion in net profit.
"The data centres, coupled with the gas plant in Singapore, can enhance YTL Power's net attributable equity value by about RM11 billion, on our estimates," it said.
According to Hong Leong Investment Bank Bhd (HLIB Research), YTL Corp's share price is undervalued at around RM2.71. It has tagged a fair value of RM3.33 on the stock.
HLIB Research said key catalysts for YTL Corp included YTL Power's utility business in sustaining YTL PowerSeraya Pte Ltd and Attarat Power Company earnings, turnaround of Wessex Water and new growth from data centres.
YTL Corp is also expected to be buoyed by its construction segment with external and internal projects.
YTL Corp closed 10 sen higher at RM3.26 on Friday with a market cap of RM35.96 billion, while YTL Power gained 18 sen to settle at RM4.79, valuing it at RM39.18 billion.
