Kenanga Research is positive on Yinson for its significant earnings growth from a strong floating production storage and offloading order book pipeline.
It said that its sum-of-parts target price is raised by 4% to RM3.79 from RM3.65 and maintained its “outperform” call for the energy infrastructure and technology company. However, the risks to Kenanga’s call includes crude oil prices falling below hurdle rates for floating production projects, regulatory risks, and uncertain returns for renewables investments in emerging markets, and project execution risks including cost overrun, delays and downtimes for FPSO assets.Yinson has circa five outstanding bids for new FPSO projects, which include TotalEnergies’ Maka , BP’s Block 31 SE-PAJ and Petrobras’ Albacora .
Meanwhile, RHB Investment Bank Research maintained its “buy” rating for Yinson at RM2.48, with an unchanged TP of RM3.06.