YTL Corp, a Malaysian infrastructure conglomerate, has said it is working to double its 2010 sales from 2009’s US$2.6 billion.
The firm stated that it is confident in achieving a 20 percent growth on its profits and sales over the next 10 years. It added that the improving economic condition will help boost the company’s core businesses, while its luxury and high-end property operations are expected to be the leading performers.
The luxury property units at YTL’s Kasara development at Sentosa Cove in Singapore are selling fast, and YTL said that this signifies a good response on its luxury property business in Singapore.
However, the firm is also hoping that the recovering global economy will improve its other business units, including hotels, property developments, utilities and cement manufacturing.
“Most of our utility areas and cement and all the traditional areas are giving us good profits, but will be increasing in terms of percentage,” said Francis Yeoh, managing director of YTL.
"The laggard was always properties – they were always subject to cycles in the past. Now that’s come to an end, so that property which was a laggard will contribute quite substantially to the YTL group."
The company is now half-way through its 20-year growth plan, where it expects to achieve at least 20 percent of the compounded growth rates in revenues and profits each year.
YTL is also targeting to double its turnover to US$4.7 billion for the rest of 2010. It said that it is open in making acquisitions to expand its business, but declined to give further details. However, it confirmed that the company has the resources to make purchases whenever opportunity arises.
"We have a very strong net cash position. We have reserves of about US$3.5 billion, unencumbered cash to invest. And if you gear that up, even on this we can acquire assets up to US$25-30 billion at this point in time without raising more money,” said Mr. Yeoh.
YTL said that it is looking at acquisitions in the water and power utilities, as well as in cement business. It is also betting on the China market, where it wants to expand it presence in these sectors.