The research house notes that the group touts a strong outstanding order book of RM42bil, which translates to 29x FY21 forecast revenue.
It added that the stock is trading at an attractive FY22 price-earnings of 15x, which is at a 35% discount to its five-year peak of 23x in February this year.
"We maintain our BUY recommendation on Yinson Holdings (Yinson) with a higher sum-of-parts based fair value of RM7.20 (from an earlier RM6.10), which implies a FY22F PE of 18x," said AmInvestment.
In arriving at this target price, the research house expects Yinson to secure a second huge FPSO charter for the Parque das Baleias (PDB) revitalisation field off Brazil.
Assuming Yinson has a 65% equity stake in the project, capex of US$1bil and project internal rate of return of 15%, AmInvestment believes it could add RM1.65 a share to its sum-of-parts (SOP) to RM8.85 a share.
It expects the group to proceed with a rights issue upon securing the PDB charter, and estimates the theorectical ex-SOP price to drop to "a still compelling and value-accretive" RM7.80 a share.
"Even without this new charter, the group’s earnings are set for a meteoric 76% surge, propelled by maiden contributions from the two newly converted FPSOs – Helang in November 2019 and the fast-tracked Abigail Joseph in July this year," it added.
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