BIMB Securities upgrades Yinson, raises target price to RM5.10

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KUALA LUMPUR (March 20):  BIMB Securities Research has upgraded Yinson Holdings Bhd to “buy” at RM4.52 with a higher target price of RM5.10 (from RM4.55) and said Yinson recently secured the FPSO Helang O&M contract, and FPSO Abigail-Joseph bareboat and O&M contract at Anyala Madu field off Nigeria, with a combined value of US$1.4 billion.

In a note today, the research house said FPSO players are more selective in new projects amidst limited gearing capacity.

“Given [less] competition, we expect Yinson to secure another US$1 billion-sized FPSO project in 2019 (FY20F).

“We raised FY20/21F earnings forecast by 22/23% to account for new income from both assets.

“We expect new earnings stream from these two new FPSOs in 2H20F would boost share price,” it said.