The research house, which has an "outperform" recommendation on Yinson, said this was another step towards its mid-term ambitions of reaching 1GW of renewable energy in two years, and long-term target of 5GW in five years.
The project is also the group's second in renewable energy following its foray into a 140MW plant in India, giving it a total of of 330MW solar production capacity to date.
Kenanga noted that the tariffs will be significantly lower than its the first solar project at a rate of INE 2.25/kWh versus INR4.35kWh, given that this project was awarded four to five years ago.
It added that land costs will be very minimal with infrastructures such as connections to the grid already provided for.
"Based on our back-of-envelope calculations, assuming capex of ~USD100m, and EBITDA margins of ~80%, we arrived at an IRR of ~11% - indicating similar level of returns between the two projects," said Kenanga.
The research maintained its earnings forecast due to the assumed small impact of the project, and target price of RM6.95 based on 13x price-earnings on FY22 forecast earnings per share.