YTL Conglomerate (Part II)

How to determine the Jia Zi for a conglomerate? It is a difficult to determine but I think it can be done. Below is my analysis.

YTL Corporation started off as a construction company in 1955 by Tan Sri Dato' Seri Yeoh Tiong Lay. It is listed in the Bursa Malaysia in 1985 and since then it has growth from a single entity to a conglomerate. The group's key businesses are utilities, high speed rail, cement manufacturing, construction contracting, property development, hotels & resorts and technology incubation.

Let's take a look at YTL Corporation as a construction company before its growth into a conglomerate. A construction company involves the elements of wood and earth. The two elements involve is yang in nature that is Jia Wood and Wu Earth. There are three Jia Zi which contain Jia Wood and Wu Earth. I have eliminated the two Jia Zi and chosen the Jia Xu Pillar as the construction business.Why? The woods that are used to build buildings, houses and condominiums are dead wood. There are used and later discarded. Furthermore, the houses and building must be solid and hard apart from the land it is constructed on. At the Wu Yin and Jia Chen pillars, the earth is still moist with the leftover Qi from the winter. The woods in these two pillars are also living and strong woods. It not fit the category of usable wood, woods that are being chopped for many usages.

Over the passage of time, YTL Corporation has growth from a simple construction company to an investment holding and management company with a group of subsidiaries companies that involve in various other businesses under its flagship.

Definition for Investment Holding and Management Company

Broadly speaking, the term "investment holding and management company" might be used to describe any company that owns a majority of shares in another company. The company itself does not produce goods or services and it only purpose is to own shares of other companies (or owning other companies outright). Depending on its percentage of shares ownership, it may also control and manage the other companies. Its main incomes are from the payment of dividends, rent or interest. It allows the reduction of risk for the owners and can allow the ownership and control of a number of different companies. The parent company in a conglomerate corporation is usually a holding company.

The owned companies may be:

• Subsidiary companies ~ the holding company owns more than 50% thus giving control.
• Associated companies ~ the parent company owns 20-50%. This is a large shareholding should provide considerable influence (but not control) over the associated company.
• Related companies ~ similar to associated companies. The holding company own relatively fewer than 20% of shares in another company. It is held because of expected good dividends or the two companies are co-operating with each other in some area of business.

Should we change YTL Corporation Jia Zi Pillar?

Given the different function between holding company and a construction company, would YTL Corporation Jia Zi look different now?

One of the many possible branches for conglomerates can be found in the four graveyards (Chen Dragon, Wei Goat, Xu Dog and Chou Ox) because of its abilities to store other elements. Apart from the four graveyards, the Ren Water which represents ocean. There are many things which are hidden inside the ocean. Hence, Hai Pig is another possibility. However, since we are dealing with a company which started off as a construction company, I would look into the four graveyards.

Since the main core business of YTL Corp is now a investment holding company, the Xu Dog branches may be remain as it ability to store the Ding Fire as well as contain the Xin Metal. As YTL Corp also overseeing many types of businesses under its subsidiaries, hence the Bing Fire suits well as to sit on Heavenly Stem of the pillar. Bing Fire is the fire of the sun which shines everything in its path. Apart from this, the Jia Wood of the original stem also produces the Bing Fire in the cycle of production. However in reality the Bing Fire gives life to the wood element. This very much describe the YTL Corporation from a construction company to a conglomerate. The wood produces the fire, the fire also growth the wood.

I have list out all the YTL Corporation subsidiaries companies in the flowchart below and the pillar which represent each of the company business.

Click on the Flow Chart to enlarge.

Take notes of the elements of each subsidiaries, they are mostly the Wealth, Rob Wealth or Friends Stars of the YTL Corporation, 戌Xu, on the branches which represent the core business. On the stem, show the Output, Wealth, Officer and Resource Stars for 丙Bing.