"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.