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.