AMBANK Research is maintaining its buy call on Yinson Holdings with a higher sum-of-parts based fair value of RM7.20, compared to RM6.10 previously.
This implies an earnings per ratio (PE) of 18 times for the financial year ending Jan 31, 2022 forecast (FY22F).
“With Yinson’s results for the second quarter of financial year ending July 21, 2021 (2QFY21), scheduled to be announced on Sept 28, we remain sanguine on the group, one of the few remaining global floating, production, storage and offloading (FPSO) operators with a strong fiscal discipline following the financial crunch of the past oil down cycle and ongoing Covid-19 pandemic, leaving many other rivals in the dust, said analyst Alex Goh.
“Notwithstanding the deferrals and cancellations of multiple oil & gas projects, Yinson is poised to secure a second huge FPSO charter for the Parque das Baleias (PDB or Whale Park) revitalisation field off Brazil.
“This could add RM1.65/share to our SOP to RM8.85/share, assuming a 65% equity stake in the project, capex of US$1bil (RM4.1 bil) and project an internal return rate (IRR) of 15%,” added Goh.
According to AmBank Research, the stock currently trades at an attractive PE of 15 times for FY22F, supported by a strong outstanding order book of RM42bil (US$10.3bil), which translates to 29 times of revenue forecast for financial year ending Jan 31, 2021 (FY2021F).
This is at a 35% discount to its five-year peak of 23 times in Feb this year.
Yinson is one of the world’s leading floating, production, storage and offloading (FPSO & FSO) service providers.
As at 9.20am today, Yinson share price was at RM5.99 with a market capital of 6.57 bil. – Sept 22, 2020