KUALA LUMPUR: Regardless of a weaker FY22 earnings end result, Yinson Holdings Bhd‘s long-term prospects stay intact because it continues to hunt development alternatives within the FPSO and renewables segments, mentioned Kenanga Analysis.
Whereas the group’s FY22 core Patami of RM411mil was down 36%, Kenanga mentioned it was inside expectation whereas remaining optimistic over its development outlook.
The analysis agency mentioned in a report that the group is seeking to develop earnings by way of participation in FPSO bids in Angola, Suriname and Vietnam.
In the meantime, it stays on the forefront of vitality transition with about 1.5GW of renewable vitality tasks present within the improvement and consent stage because it targets to attain carbon neutrality by 2030.
Nevertheless, Kenanga famous additionally that to funds its development, the group is in search of to boost RM1.1-1.2bil by way of a rights problem, which is predicted to be finalized within the coming weeks.
“Publish outcomes, we made no modifications to our FY23E earnings, whereas introducing new FY24E numbers.
“In the meantime, publish mannequin replace, our SoP-TP can be lowered to RM5.40 (from RM7.35 beforehand).
“We’ve additionally widened our share base dilution assumption from the rights problem to 30% (from 15% beforehand), contemplating the group’s intention of pricing the problem value at a 25-45% low cost, as effectively the current share value weak spot,” it mentioned.
Kenanga, which maintained its “outperform” name on the inventory, mentioned it stays optimistic on Yinson for its succesful administration group, long-term development prospects and its ESG angle being effectively forward of native and gasoline friends when it comes to vitality transition.