PETALING JAYA: The prospects of YTL Energy Intelligence Bhd’s UK unit, Wessex Water Companies Ltd, stay optimistic, contributing to the earnings progress of the Malaysian conglomerate.
This projection is underpinned by the superb operational efficiency of the water provide and sewerage utility firm, in addition to the upper authorized and regulatory capital expenditure (capex) necessities to protect the surroundings and meet long-term water demand in the UK, in accordance with RHB Analysis.
Having lately visited Wessex Water, the brokerage famous that the corporate had submitted its five-year enterprise proposal (2025-2030) to the UK water providers regulation authority, together with a better return and capex allocation of £3.5bil over the following years, in comparison with £1.4bil beforehand.
“We perceive that the numerous spike is principally pushed by authorized or regulatory necessities on river well being led measures and will end in a 30% enhance within the common invoice,” RHB Analysis stated, including the end result of the enterprise proposal would seemingly be identified by the top of this yr.
Wessex Water is one in every of 10 regional water and sewerage companies in England and Wales, persistently ranked as one of the best water and sewerage firm, in accordance with business regulators.
The unit provides water to 1.4 million folks and round 44,000 companies with greater than 282 million litres of water per day.
It additionally affords wastewater therapy to 2.9 million folks and round 57,000 companies with about 888 million litres of sewage per day.
RHB Analysis identified that in the UK, water corporations and authorities businesses at the moment are re-evaluating methods for water conservation and drought preparedness.
“There are additionally long-term plans to make sure long-term water demand is met particularly when there’s a requirement to scale back underground water provide by giving again the water to the surroundings for sustainable abstraction and preservation.
“The Mendip quarries has been recognized as a possible future reservoir web site,” it stated.
“The undertaking is estimated to price £1.1bil – it’s nonetheless beneath the event stage and no closing funding determination to be achieved. Wessex Water will push by way of this undertaking within the upcoming regulatory evaluate in 2031 to 2035,” it added.
Apart from the optimistic contribution from Wessex Water, RHB Analysis remained optimistic in regards to the prospects of different enterprise segments beneath YTL Energy, specifically, the group’s synthetic intelligence-data centre (AI-DC) improvement.
As such, the brokerage reiterated “purchase” on YTL Energy, with an unchanged sum-of-parts-based goal worth of RM6.68.
Total, RHB Analysis stated it was optimistic over the conglomerate’s long-term earnings potential from its AI-DC improvement, with the near-term catalyst being the conclusion of the offtaker for the primary 20 megawatt (MW) of the 100MW AI-DC undertaking.
PETALING JAYA: The prospects of YTL Energy Intelligence Bhd’s UK unit, Wessex Water Companies Ltd, stay optimistic, contributing to the earnings progress of the Malaysian conglomerate.
This projection is underpinned by the superb operational efficiency of the water provide and sewerage utility firm, in addition to the upper authorized and regulatory capital expenditure (capex) necessities to protect the surroundings and meet long-term water demand in the UK, in accordance with RHB Analysis.
Having lately visited Wessex Water, the brokerage famous that the corporate had submitted its five-year enterprise proposal (2025-2030) to the UK water providers regulation authority, together with a better return and capex allocation of £3.5bil over the following years, in comparison with £1.4bil beforehand.
“We perceive that the numerous spike is principally pushed by authorized or regulatory necessities on river well being led measures and will end in a 30% enhance within the common invoice,” RHB Analysis stated, including the end result of the enterprise proposal would seemingly be identified by the top of this yr.
Wessex Water is one in every of 10 regional water and sewerage companies in England and Wales, persistently ranked as one of the best water and sewerage firm, in accordance with business regulators.
The unit provides water to 1.4 million folks and round 44,000 companies with greater than 282 million litres of water per day.
It additionally affords wastewater therapy to 2.9 million folks and round 57,000 companies with about 888 million litres of sewage per day.
RHB Analysis identified that in the UK, water corporations and authorities businesses at the moment are re-evaluating methods for water conservation and drought preparedness.
“There are additionally long-term plans to make sure long-term water demand is met particularly when there’s a requirement to scale back underground water provide by giving again the water to the surroundings for sustainable abstraction and preservation.
“The Mendip quarries has been recognized as a possible future reservoir web site,” it stated.
“The undertaking is estimated to price £1.1bil – it’s nonetheless beneath the event stage and no closing funding determination to be achieved. Wessex Water will push by way of this undertaking within the upcoming regulatory evaluate in 2031 to 2035,” it added.
Apart from the optimistic contribution from Wessex Water, RHB Analysis remained optimistic in regards to the prospects of different enterprise segments beneath YTL Energy, specifically, the group’s synthetic intelligence-data centre (AI-DC) improvement.
As such, the brokerage reiterated “purchase” on YTL Energy, with an unchanged sum-of-parts-based goal worth of RM6.68.
Total, RHB Analysis stated it was optimistic over the conglomerate’s long-term earnings potential from its AI-DC improvement, with the near-term catalyst being the conclusion of the offtaker for the primary 20 megawatt (MW) of the 100MW AI-DC undertaking.
