With the cooling of sentiment, the stock price fell, analysts suggest that it may be a good buying opportunity for both Yang Zhongli institutions.

Galaxy International Securities analysts pointed out that the net profit performance of Yang Zhongli's electrical utilities and institutions in the 2024 fiscal year (ending in June) exceeded expectations, but due to the delayed launch date of the former's artificial intelligence (AI) data center to the 2026 fiscal year, the projected earnings for Yang Zhongli's electrical utilities in the 2025 fiscal year have been revised down by 13%.

The improvement in profitability of Wessex water affairs and telecommunications business under Yang Zhongli Electrical Utilities can partially offset the negative impact brought by the datacenter aspect.

Analysts believe that the profit margin of Yang Zhongli Electrical Utilities' datacenter business may not meet his original expectations, as the competition in the relevant market is rapidly intensifying, causing the company to gradually lose its first-mover advantage.

In summary, we have lowered Yang Zhongli Electrical Utilities' target price from the original 5.50 ringgit to 4.50 ringgit.

At the same time, the analyst mentioned that after lowering the profit expectations of Yang Zhongli Electrical Utilities, the profit forecast for Yang Zhongli institutions in the 2025 fiscal year was also revised downward by 14%, but their cement business profits remained strong, providing some support.

Regardless, analysts believe that after the stock prices of Yang Zhongli's electrical utilities and institutions both declined, investment value has emerged, hence the rating for both companies has been raised from 'Hold' to 'Buy'.

According to the analyst, Yang Zhongli's electrical utilities have fallen by 30% since May, while Yang Zhongli's institutions have dropped by 20%, underperforming the 1% rise in the composite index for the same period.

"As the stock price declines, we believe the investment value of Yang Zhongli's electrical utilities and institutions has become apparent."

The analyst pointed out that Yang Zhongli's institutions have a forecasted P/E ratio of 16 times for the 2025 fiscal year, consistent with the overall average of Malaysian construction stocks, but the company has a competitive advantage and should be valued higher.

"Yang Zhongli's institutions are the only infrastructure contractor among the current composite index stocks, leading the competition in the Longxin high-speed rail (HSR) project."

Maybank Investment Bank has also upgraded its rating for Yang Zhongli's electrical utilities from 'Hold' to 'Buy', with a target price of 4.70 MYR, lower than the previous 5.20 MYR.

Lian Cheng International Securities maintains a 'Buy' rating for Yang Zhongli's electrical utilities, with the target price reduced from 6.22 MYR to 5.59 MYR.

Before the announcement of yesterday's performance, Yang Zhongli's stocks faced heavy selling pressure, all falling by more than 12% this week.

However, with the latest performance incentives and the push from numerous investment banks, Yang Zhongli's electrical utilities and institutions both experienced a rebound in stock prices today.

Among them, the rebound of Yang Zhongli's electrical utilities was astonishing, rising as much as 36 cents or 9.60% to 4.11 ringgit at one point during the day; Yang Zhongli's institutions also surged by 28 cents or 9.15% to 3.34 ringgit at one point during the day.