PETALING JAYA: Analysts have provided contrasting valuation and calls on Yinson Holdings Bhd
following its first-half performance for financial year 2027 (1H27) and amidst ongoing privatisation discussions of the company.
CIMB Research downgraded to stock to a “hold” from “buy” and lowered its target price (TP) to RM2.26 a share (from RM2.85), as Yinson’s 1H27 earnings missed its estimates as a result of lower revenue recognition and elevated financing costs
The research house added the indicative privatisation price of RM2.35 per share by a consortium – comprising MISC Bhd, Yinson Legacy and the Employees Provident Fund – acts as an effective cap on near-term share price upside, despite ongoing contract negotiations for the floating production, storage and offloading (FPSO) vessel Albacora.
UOB Kay Hian (UOBKH) Research, meanwhile, maintained a “buy” call on Yinson with a TP of RM2.40 a share, noting the company’s 1H27 core profit was in line with its forecast.
UOBKH Research emphasised Yinson’s robust execution capabilities, narrowing non-FPSO division losses, and a dramatic turnaround in operating cash flow which supported debt repayments.
RHB Research is the most bullish on Yinson with a strong “buy” call and TP of RM3.83 a share, underpinned by the latter’s strong fundamental cash flows, order book strength and balance sheet improvement.
It deemed Yinson’s 1H27 financial results to be in line with its forecast. The research house anchored its thesis on Yinson’s US$18.9bil order book which provides long-term earnings visibility through 2050.
