YTL Power stock prices has been on the decline since the launching of YES 4G. I am struggling to understand its move as the public has been. After reading a blog post in http://goodstockbadstock.blogspot.com/, I found the answer. Basically, YTL Power is hedging for the future. The first generation IPPs contract in Malaysia will expire gradually in the near future(5-15 years if I am not mistaken), the double digit yields enjoyed by them may be reduced to single digits upon renewal of the contracts or may not be renewed). YTL Power is trying to get a new revenue generator which has stable growth(ElectraNet, Wessex Water, Jawa Power, Power Seraya….look at the acquired assets as a group and you shall see some similar features)
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