KUALA LUMPUR (Jan 29): RHB Research has downgraded Yinson Holdings Bhd to “Neutral” with a lower target price of RM3.05 (from RM3.19) after Yinson received the green light to develop a US$2.5 billion, 15-year FPSO contract for the OCTP project, off Ghana.
In a note today, the research house said the FPSO would triple firm orderbook to US$3.5 billion, boosting the overall firm contract period and track record.
“However, we envision limited upside and anticipate profit-taking upon contract win.
“It will take three years for material earnings contribution,” it said.