$YTL (4677.MY)$ MIDF Research said the proposed acquisition ...

$YTL (4677.BMS)$ MIDF Research said the proposed acquisition of the NSL stake is expected to create synergistic benefits to the YTL group while opening doors to new markets for the company.

“YTL’s acquisition of NSL will open the doors to the industrialised building system business in Malaysia, Singapore, Dubai and Finland. This will synergise well with YTL Cement’s business, which comes at an opportune time in light of the boom in data centres and industrial buildings in Malaysia, where precast concrete components are expected to facilitate the speed of construction,” MIDF Research said.

“Apart from penetrating new markets, the acquisition also allows YTL Cement to expand into the environmental services business,” it added.

MIDF Research has maintained its “buy” call on YTL with an unchanged target price of RM4.19.

“We continue to like YTL as a beneficiary of the infrastructure upcycle, given its dominant share of domestic cement supply; its strategic venture into data centres and renewable energy via its utilities division.

“We view the proposed acquisition of NSL as a positive one for YTL,” it explained.