US stocks mostly rose Tuesday after data showed US inflation easing in April, extending the market’s positive momentum on the improving outlook for trade relations with major partners.
DNB is still loss making, as the take-up of 5G wholesale capacity has not reached the critical level for the business to break even, as its profit is dragged down by high depreciation charges and operating costs.
Take an example, assuming DNB has spent capex of RM5 billion for building the first 5G network nationwide, and has borrowed some RM3 billion or 60% to fund it. Depreciation charges may amount to RM250 million a year assuming a depreciation period of 20 years. Interest expenses may amount to RM150 million a year assuming an average interest rate of 5% p.a.
If the 5G wholesale capacity take-up rate is at 50% now, the revenue may come in at say RM350 million a year, hence DNB will incur a pretax loss of RM350m - RM250m - RM150m - RM50m operating costs = (RM100m) loss.
But if the 5G wholesale capacity take-up rate ramps up to 100% later, revenue will double to RM700 million a year, and DNB may achieve a pretax profit of RM250 million a year.
For its 19.33% stakes in DNB, and higher when MOF Inc exercises its put option, YTL Power may equity account pretax profit of RM50 million a year from DNB.
I am not sure of the utilisation rate of DNB's 5G network, I was just using 50% as an example. Based on the original business plan of DNB, it may only achieve full utilisation by 2030 or so. Now with the second 5G network from U Mobile coming in from 2027/2028, it may take even longer time for DNB to achieve full utilisation. But I think DNB will at least break even by 2027.
For U Mobile, the main purpose for Vincent Tan to try so hard to get the second 5G license is for him to flip around the assets. He plans to force the current major shareholder from Singapore to pare down its stakes in U Mobile to 20%, which the major shareholder has agreed to right after U Mobile secured the second 5G network license. He is now planning to put U Mobile for public listing, aiming to raise a few billion ringgit from the listing exercise to fund the capex for building the second 5G network. As we know, Berjaya group has no money to fund the capex and Agong will not come out with any money too.
Mr Dragon请问ytlpower增加DNB的持股，这会带来盈利吗？
DNB is still loss making, as the take-up of 5G wholesale capacity has not reached the critical level for the business to break even, as its profit is dragged down by high depreciation charges and operating costs.
Take an example, assuming DNB has spent capex of RM5 billion for building the first 5G network nationwide, and has borrowed some RM3 billion or 60% to fund it. Depreciation charges may amount to RM250 million a year assuming a depreciation period of 20 years. Interest expenses may amount to RM150 million a year assuming an average interest rate of 5% p.a.
If the 5G wholesale capacity take-up rate is at 50% now, the revenue may come in at say RM350 million a year, hence DNB will incur a pretax loss of RM350m - RM250m - RM150m - RM50m operating costs = (RM100m) loss.
But if the 5G wholesale capacity take-up rate ramps up to 100% later, revenue will double to RM700 million a year, and DNB may achieve a pretax profit of RM250 million a year.
For its 19.33% stakes in DNB, and higher when MOF Inc exercises its put option, YTL Power may equity account pretax profit of RM50 million a year from DNB.
谢谢MrDragon，你说得对，如果现在使用率只有50％，再加上u mobile的新5G，会影响到DNB吗？既然竞争那么激烈，为什么Umobile还要独自建立新的5G？投入那么大资金，回酬还不确定，Umobile会得到什么呢？
I am not sure of the utilisation rate of DNB's 5G network, I was just using 50% as an example. Based on the original business plan of DNB, it may only achieve full utilisation by 2030 or so. Now with the second 5G network from U Mobile coming in from 2027/2028, it may take even longer time for DNB to achieve full utilisation. But I think DNB will at least break even by 2027.
For U Mobile, the main purpose for Vincent Tan to try so hard to get the second 5G license is for him to flip around the assets. He plans to force the current major shareholder from Singapore to pare down its stakes in U Mobile to 20%, which the major shareholder has agreed to right after U Mobile secured the second 5G network license. He is now planning to put U Mobile for public listing, aiming to raise a few billion ringgit from the listing exercise to fund the capex for building the second 5G network. As we know, Berjaya group has no money to fund the capex and Agong will not come out with any money too.
很棒Mr Dragon，谢谢您的回复。