RHB upgrades Yinson to 'buy' after factoring Petrobras contract win

KUALA LUMPUR: RHB Research has upgraded Yinson Bhd to "buy" as the latter emerged as the sole bidder for Petrobras's PDB project with a contract expected to be signed by 3Q21.

"While we maintain our earnings estimates, our SOP-derived TP is lifted to MYR6.46 after factoring in one new project win, which assumes USD1bn in capex, project IRR of 15%, WACC of 7%, and 70% equity stake, coupled with a 10% higher share base to raise funds.

"We upgrade the stock on anticipation of another major contract win in the near term," said RHB in a note.

The research house noted that the group's other tender project awards - Limbayong and Pecan - could be known by this year as well.

Meanwhile, the research house is long-term positive over Yinson's recent investents in Oyika and Moovita, which are in line with its net carbon zero ambitions.

Near-term earnings contributions from these companies however are expected to be minimal.

Oyika is a Singapore start-up that provides electric motorbike serices with a battery swap service through affordable subscriptions plans.

Moovita on the other hand is a Singapore start-up that offers vehicle agnostic driverless software solutions.

Yinson's total invested amount in the companies was guided at under US$20mil.
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RHB Research , Yinson , Perobras , Oyika , Moovita


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