PETALING JAYA: Energy infrastructure firm Yinson Holdings Bhd
is expected to post strong earnings growth for its financial year ending Jan 31, 2026 (FY26) and FY27 driven by contributions from three new floating production, storage and offloading (FPSO) vessels, says CIMB Research.
The research house has maintained a “buy” call on the stock with a target price of RM2.93, despite the company’s net profit for the second quarter ended July 31, 2025 of financial year 2026 (2Q26) having been halved compared with 2Q25 on lower contributions from its engineering, procurement, construction, installation and commissioning (EPCIC) segment and higher costs.
The research house noted that at current share price levels, the company is trading at an FY27 price-earnings multiple of eight times, representing a 38.5% discount to Yinson’s five-year historical average of 13 times. It also added that the stock’s rating comes underpinned by robust long-term earnings visibility from its substantial US$19.9bil order book, including potential extensions, stretching to 2050.
“Key re-rating catalysts include successful earnings delivery from all three FPSOs and the completion of the company’s asset value-unlocking exercise involving the issuance of US$1bil in redeemable convertible preference shares this year,” it said.
The research house said key downside risks include increasing losses in the green-technology segment that recorded an operating loss of RM29mil in 2Q26, which was 141.7% higher compared with the same quarter a year ago and 70.6% higher compared with 1Q26.
CIMB Research said it expects core net profit to increase 4.5% in the second half of FY26, underpinned by the commencement of one of the FPSO vessels that started operations in August.
Overall, the research house’s earnings forecasts for Yinson from FY26 to FY28 remains unchanged, with projected year-on-year growth of 86.6% in FY27 and 10.6% in FY28, underpinned by full-year contributions from one of the FPSOs and in the absence of EPCIC cost overruns.
Yinson’s earnings visibility would be supported when production operations ramp up for the other two FPSOs that are projected to contribute significantly to revenue and net profit.
