YTL Corporation Berhad: history, ownership, mission, how it works & makes money

A Brief History of YTL Corporation Berhad

YTL Corporation Berhad, established in 1955 by Yeoh Tiong Lay, has evolved into one of Malaysia's leading infrastructure conglomerates. Initially a construction company, YTL expanded into various sectors, including utilities, telecommunications, and property development.

The company became publicly listed on the Kuala Lumpur Stock Exchange in 1985, under the stock code YTL. As of the financial year ending June 30, 2023, YTL Corporation reported a total revenue of RM 15.5 billion and a net profit of RM 2.1 billion.

In the early 1990s, YTL diversified into the utility sector by acquiring water and electricity assets. The significant acquisition of YTL Power International Berhad in 1997 allowed the company to venture into the energy sector. YTL Power became one of the largest independent power producers in Malaysia, contributing to Malaysia's energy supply. For the fiscal year ended 2023, YTL Power reported a revenue of RM 12.8 billion, with a net income of RM 1.5 billion.

YTL further expanded its footprint internationally with investments in the United Kingdom. YTL Cement, acquired in 2004, is now one of the leading cement manufacturers in Malaysia. The cement division recorded a revenue of RM 2.3 billion in 2023.

Over the years, YTL Corporation has pursued sustainability initiatives, focusing on renewable energy sources. In 2022, YTL Power announced plans to invest RM 1.2 billion into solar energy projects, aiming to generate over 500 MW of renewable energy by 2025.

As of 2023, YTL Corporation employs over 20,000 people across its various divisions. The company continues to maintain a robust financial position, with total assets valued at RM 30 billion and a current ratio of 1.5, indicating strong liquidity.

YTL's commitment to innovation is evident in its foray into digital infrastructure. In 2021, YTL launched a telecommunications subsidiary, YTL Communications, which reported a subscriber base of over 3 million users and generated a revenue of RM 1 billion in its first operational year.

In summary, YTL Corporation Berhad's growth is marked by strategic diversification and international expansion, solidifying its position as a key player in Malaysia's infrastructure and utilities sector.

A Who Owns YTL Corporation Berhad

YTL Corporation Berhad, founded in 1955, has a diversified ownership structure with significant stakes held by both individual and institutional investors. As of the latest available data from October 2023, YTL Corporation's major shareholders are as follows:

The company's shares are traded on the Bursa Malaysia under the stock code "4677." In the fiscal year ended June 30, 2023, YTL Corporation reported a total revenue of approximately RM 17.3 billion, reflecting a growth of 5.2% year-on-year. The net profit for the same period was RM 1.3 billion, up from RM 1.2 billion in the previous fiscal year.

YTL Corporation comprises various subsidiaries involved in sectors such as construction, property development, utilities, and hospitality. YTL Power, a subsidiary of YTL Corporation, is one of the key players in the energy sector, contributing significantly to the company's revenue. In the latest quarterly report, YTL Power recorded an operating income of RM 1.25 billion.

Ownership distribution further highlights the influence of institutional investors. The Employees Provident Fund, managing assets exceeding RM 1 trillion, plays a vital role in YTL Corporation’s investment landscape, driving broad-based ownership among Malaysian citizens.

As of September 2023, YTL Corporation's share price was approximately RM 1.30, with a market capitalization of around RM 10 billion. The stock has shown a year-to-date performance of around 8%, indicating a steady upward trend in investor confidence.

YTL Corporation's governance structure also reflects its diverse ownership, with a board of directors that includes representatives from various holding companies and independent directors to ensure balanced oversight.

YTL Corporation Berhad Mission Statement

YTL Corporation Berhad, a leading Malaysian infrastructure and utilities conglomerate, operates with a clear mission to enhance the quality of life through the provision of sustainable and innovative services. The company focuses on delivering exceptional value in its diversified business segments, which include utilities, construction, property development, and hospitality.

The mission statement of YTL Corporation emphasizes commitment to:

• Creating long-term value for stakeholders through sustainable growth.
• Delivering high-quality services and products that exceed customer expectations.
• Engaging in responsible environmental and social practices.
• Investing in technology and innovation to drive efficiencies and effectiveness.

As of the latest financial reports, YTL Corporation has demonstrated significant financial strength that underpins its mission.

YTL Corporation is dedicated to aligning its strategic objectives with its mission. The company achieved a 14.7% increase in net profit, reaching MYR 2.134 billion in 2023, showcasing effective management and operational efficiencies.

Moreover, YTL Corporation's focus on sustainability is reflected in its investments and practices. The company has committed over MYR 500 million in green initiatives aimed at reducing its carbon footprint and promoting energy efficiency within its operations. This is part of a broader corporate responsibility strategy that ensures the company remains a positive force in the communities it serves.

Continuing to invest in innovation, YTL has set aside MYR 200 million for technology upgrades across its utilities segment, enhancing service delivery and responsiveness to customer needs.

The mission statement is not merely a declaration; it's a guiding principle that influences YTL Corporation’s strategic decisions and operational tactics. The commitment to stakeholder value, sustainability, and technological advancement positions YTL Corporation as a forward-thinking and responsible leader in its field.

How YTL Corporation Berhad Works

YTL Corporation Berhad, listed on Bursa Malaysia, operates as a diversified group with interests spanning various sectors, including utilities, construction, property development, and hospitality. As of its latest financial year, YTL Corporation reported revenue of approximately RM 18.5 billion for the fiscal year ending June 30, 2023.

Core Business Segments

The company's operations are primarily divided into four segments:

• Utilities: YTL Power International Berhad is a significant subsidiary, contributing over RM 9.6 billion to the total revenue, primarily through electricity generation and water supply.
• Construction: YTL Construction Sdn Bhd is involved in major infrastructure projects, reporting a revenue of RM 4.2 billion in the last fiscal year.
• Property: YTL Land & Development Berhad oversees residential and commercial developments, contributing approximately RM 2.3 billion in revenue.
• Hospitality: The hotel segment, including The Ritz-Carlton and Pelican Bay, yielded around RM 1.4 billion in revenue in 2022.

Financial Performance

YTL Corporation's financial performance reflects its diversified approach. The total assets as of June 30, 2023, stood at RM 57.1 billion, with total liabilities of RM 31.5 billion, resulting in a net asset value of RM 25.6 billion.

Market Position

YTL Corporation is one of the largest companies in Malaysia with a market capitalization of approximately RM 33 billion as of October 2023. The company has established itself as a leader in the utilities sector, holding substantial stakes in power generation and water services across Malaysia and abroad.

As part of its strategy, YTL has been expanding its renewable energy portfolio, with investments in solar power that are expected to increase contribution to revenue by 20% over the next five years. The commitment to sustainability is evident, aiming for a significant reduction in carbon emissions, targeting 50% reductions by 2030.

Challenges and Opportunities

Despite its robust performance, YTL Corporation faces challenges such as fluctuating commodity prices affecting construction costs and regulatory changes in the utilities sector. However, opportunities lie in expanding its digital services in utilities and enhancing its property development projects to cater to the growing demand for smart city infrastructure.

In conclusion, YTL Corporation Berhad operates through a diversified portfolio, with a focus on innovation and sustainability driving future growth, making it a key player in the Malaysian economy.

How YTL Corporation Berhad Makes Money

YTL Corporation Berhad, a Malaysian conglomerate, generates revenue through a variety of operational segments. These include construction, property development, utilities, and hospitality. Each segment contributes distinctively to the overall financial performance of the company.

Revenue Streams

• Construction
• Property Development
• Utilities
• Hospitality
• Investment and Others

Financial Performance Overview

For the financial year ended June 30, 2022, YTL Corporation reported a revenue of RM 13.12 billion, up from RM 11.76 billion in the previous year, marking an increase of approximately 11.52%.

Segment Contributions

Construction Segment

The construction segment is a key revenue driver for YTL Corporation, underscored by several significant projects. As of 2022, the segment secured contracts valued at approximately RM 8.0 billion in ongoing projects.

Property Development

YTL's property development segment has a diverse portfolio, including residential and commercial properties. The total sales value of ongoing projects is estimated at about RM 5.0 billion.

Utilities Segment

The utilities segment includes power generation and water services. YTL Power International, a subsidiary, reported an operating profit of around RM 1.1 billion for the financial year 2022.

Hospitality Segment

In the hospitality sector, YTL Corporation operates several luxury hotels and resorts. Despite pandemic-related challenges, revenue from this segment for FY 2022 was approximately RM 1.25 billion, showing a recovery trend with a year-on-year growth of 15.2%.

Investment Strategies

YTL also engages in strategic investments, contributing to its revenue through dividends and capital gains. As of 2022, the company reported unrealized gains from its investment portfolio amounting to RM 300 million.

Market Position

YTL Corporation is well-positioned in the Malaysian market, with a market capitalization of approximately RM 12 billion as of October 2023. The company maintains a strategic focus on sustainable growth and innovation across its various sectors.

Conclusion of Financial Year Performance

With continuous diversification and strategic project execution, YTL Corporation Berhad demonstrates robust financial performance across its sectors. The company remains committed to enhancing its revenue streams through operational efficiency and market adaptability.