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Maybank keeps ‘buy’ call on Yinson Holdings

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KUALA LUMPUR, Dec 21 — Maybank Investment Bank Research (Maybank IB) is maintaining its “buy” call with a target price of RM4.35 on Yinson Holdings Bhd.

This is mainly on the strength of its offshore support vessel (OSV) operations in the third quarter financial year 2017 (3QFY17).

The strength had led to a 10 per cent lift in Maybank IB’s FY17 core earnings forecasts.

“We raised the forecast by 10 per cent to reflect the stronger 3Q17.

“We do not rule out Yinson securing one to two new floating production storage and offloading (FPSO) jobs over the next 12 months.

“Clinching any of these jobs would be a re-rating not imputed by the market yet,” it said in a note today.

Yinson’s four existing tenders are in Vietnam, Malaysia, Nigeria and Gabon.

Meanwhile, Kenanga Research Institute reiterated its “outperform” rating for Yinson with a lower target price of RM3.79 from RM3.92 previously, post completion of divestment exercise and distribution of special dividend of 14.6 sen.

In a research note, Kenanga attributed the better nine month FY17 result to the lower-than-expected finance cost.

“We continue to like the stock for its steady earnings contribution and potential of winning new contracts over the next three to six months, as well as being the beneficiary of a stronger US dollar,” said the research house.

At 10.31am, Yinson shares edged up two sen to RM2.90, with 139,900 changing hands. — Bernama



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