PETALING JAYA: Despite weaker financial year 2022 (FY22) earnings, Yinson Holdings Bhd
’s long-term prospects remain intact as it continues to seek growth opportunities in the floating production, storage and offloading (FPSO) and renewable energy (RE) segments.
According to Kenanga Research, while the group’s FY22 core profit after tax after minority interest or Patami of RM411mil was down 36%, it was within expectations. It noted that the group was looking to grow earnings via participation in FPSO bids in Angola, Suriname and Vietnam.
Meanwhile, it remains at the forefront of energy transition with about 1.5 gigawatt of RE projects currently in the development and consent stage as it targets to achieve carbon-neutrality by 2030.
However, Kenanga Research noted also that to fund its growth, the group was seeking to raise RM1.1bil to RM1.2bil via a rights issue, which is expected to be finalised in the coming weeks.
“Post-results, we made no changes to our FY23 estimate earnings, while introducing new FY24 estimate numbers.
“Meanwhile, post-model update, our sum-of-parts target price is also lowered to RM5.40 (from RM7.35 previously).
“We have also widened our share base dilution assumption from the rights issue to 30% (from 15% previously), considering the group’s intention of pricing the issue price at a 25% to 45% discount, as well as the recent share price weakness,” the research firm said in a report yesterday.
Kenanga Research, which has maintained its “outperform” call on the stock, said it remained positive on Yinson for its capable management team, long-term growth prospects and its environmental, social, and governance angle being well ahead of local and gas peers in terms of energy transition.
