YTL Corporation Berhad (YTL) has reported a solid performance for FY24, aligning closely with both internal and consensus expectations. The company posted a net profit of RM534.5 million for 4QFY24, elevating its full-year net profit to RM2.14 billion, nearly double the figure from FY23. This performance exceeded projections by approximately 2%, with the group declaring an interim dividend per share (DPS) of 4.5 sen.

YTL maintains a BUY rating with an unchanged target price (TP) of RM4.19, reflecting confidence in its infrastructure-focused strategy and new ventures into data centres and renewable energy. Another analyst has upgraded the construction company from Hold to Add with a revised TP of RM3.55. This adjustment comes amid a 20% decline in YTL's share price over the past three months, making the stock appear undervalued compared to its historical performance and the sector average.

Analysts remain optimistic about YTL's future despite a slight sequential decline in performance from its utilities and cement divisions. The company's key investment highlights include a robust +23.6% quarter-on-quarter increase in profit before tax (PBT), driven predominantly by management services and other segments. Notably, the company is actively tendering for external construction projects, including the Penang International Airport expansion and various infrastructure projects in Sarawak. Additionally, the group is in the midst of acquiring an 81.24% stake in NSL Ltd for SGD227.6 million (RM792.3 million), which is expected to enhance its industrialised building system (IBS) capabilities.

The upcoming auction of a new 10-year Malaysian Government Securities (MGS) is anticipated to replace the existing benchmark bond. The new issuance, expected to be MYR4.5 billion in size, could further impact YTL's market positioning as it navigates through these dynamic changes.