KUALA LUMPUR: Shares of Yinson Holdings Bhd
rose to a more than three-week high of RM3.33 on Thursday as investor sentiment perked up after it bagged a US$1bil (RM4.4bil) contract in Vietnam.
At 10.17am, it was up 13 sen to RM3.30. There were 948,400 shares done at prices ranging from RM3.27 to RM3.33.
The FBM KLCI slipped 0.23 of a point or 0.01% to 1,768.69. Turnover was 1.23 billion shares valued at RM475.43mil. There were 323 gainers, 275 losers and 357 counters unchanged.
Yinson with its partner PTSC, secured a floating production, storage and offloading (FPSO) charter contract. It was for 10 years plus five years.
“This job will provide earnings visibility beyond FY20, adding RM45mil to RM80mil net profit per annum in FY21-30 and increase our sum-of-parts-based target price by 6% (24sen/shr) to RM4.30,” Maybank Investment Bank Research said.
It maintained its “buy” call on Yinson and raised the target price by 6% to RM4.30.
It said Yinson’s valuations were undemanding vis-à-vis its long-term earnings growth prospect, cashflow strength and for its lean management.
Maybank IB Research said Yinson’s likely admission as a Shariah compliant stock in May was a major positive factor.
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