Stock With Momentum: Yinson Holdings

This article first appeared in The Edge Financial Daily, on April 17, 2019.
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Yinson Holdings Bhd (+ve)

TRADING of shares in Yinson Holdings Bhd (fundamental: 1.7/3, valuation: 0.5/3), which triggered our proprietary momentum algorithm yesterday for the first time this year, closed down one sen or 0.22% at RM4.61, with a market capitalisation of RM4.98 billion.

A total of 4.56 million shares were done, versus its 200-day average trading volume of 887,660 shares.

It  provides offshore support services for the upstream oil and gas sector.

On April 1, Yinson announced that its unit acquired Singapore-based liftboat operator Ezion Holdings Ltd (EHL) by striking a deal with EHL’s lenders. Yinson said Yinson Eden Pte Ltd (YEPL) made the acquisition by signing a conditional debt conversion and conditional option agreements with EHL. Upon completion of the debt conversion, YEPL will hold a minimum 70% stake in EHL’s enlarged capital.

As at yesterday, Yinson was trading at 2.88 times its net book value.