Stock With Momentum: Yinson Holdings

This article first appeared in The Edge Financial Daily, on June 24, 2019.
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Yinson Holdings Bhd (-ve)
TRADING of shares in Yinson Holdings Bhd (fundamental: 1.7/3, valuation: 0.5/3) triggered our momentum algorithm last Friday for the second time this year.

The stock gained 25 sen or 4.3% at RM6.06 last Friday with a market capitalisation of RM6.55 billion. Some 8.28 million shares were traded, which was considerably higher than the counter’s 200-day average volume of 1.21 million shares.

Last week, Yinson secured a four-year extension of its floating production storage and offloading (FPSO) charter contract worth US$137.5 million (RM570.63 million).

Its indirect wholly-owned subsidiary Adoon Pte Ltd had entered into an addendum with Addax Petroleum Development (Nigeria) Ltd to further extend the contract for the charter of FPSO Adoon with retrospective effect from Oct 17, 2018 to Oct 16, 2022.

The original contract for the FPSO Adoon was awarded on Oct 17, 2006 for eight years with an option to renew up to eight years.