Bimb Research Highlights

Author: kltrader   |   Latest post: Thu, 17 Jun 2021, 5:53 PM


Yinson Holdings - FPSO Abigail-joseph lifted first oil

Author:   |    Publish date:

  • Overview. Excluding RM84m worth of write-off arising from deposit forfeiture of Ezion acquisition, Yinson’s 3QFY21 core PATAMI grew 40% qoq to RM186m driven by structural earnings growth from FPSO Abigail-Joseph (AJ) which commenced its charter to First E&P Ltd effective in Nov 20. On yoy basis, core earnings leaped by threefold due to maiden earnings from both FPSO AJ and construction gain of FPSO Anna Nery (AN) beginning 2QFY21.
  • Key highlights. Including FPSO AJ, Yinson currently has 6 operating FPSO vessels and 1 FPSO on order (FPSO AN). Outstanding firm orderbook as at 3QFY21 remained strong at USD10bn (2QFY21: US$10.1bn).
  • Against estimates: Inline. 9MFY21 core profit was more than double to RM412m mainly due to construction gains from FPSO AN and maiden charter income from FPSO AJ. This made up 89% of our full year FY21F earnings forecast.
  • Outlook. FY22F earnings growth to be sustained by full-year contribution from FPSO AJ lease charter and FPSO AN construction gain. We also expect Yinson to participate in the FPSO Parque re-bid exercise in CY2021 which could potentially increase its orderbook by 30% to USD15bn.
  • Our call. Maintain our BUY call with unchanged SOP-derived TP of RM6.30 which implies 12x FY22F P/E (Table 2). We remain sanguine over its outlook due to (i) its huge orderbook of lease income of USD10bn to be recognised over the next 25 years and (ii) additional income from renewable projects to further sustain its earnings.

Source: BIMB Securities Research - 22 Dec 2020

Share this
Labels: YINSON

Related Stocks

Chart Stock Name Last Change Volume 
YINSON 4.99 0.00 (0.00%) 377,200 

  Be the first to like this.

I3 Messenger
Individual or Group chat with anyone on I3investor
MQ Trader
Perform Technical & Fundamental Analysis on Stocks
MQ Affiliate
Earn rewards by referring your friends

219  725  534 

Top 10 Active Counters
 SERBADK 0.535-0.06 
 FINTEC 0.03-0.005 
 MMAG 0.165+0.005 
 DNEX 0.76-0.05 
 KNM 0.165-0.015 
 SERBADK-WA 0.10-0.005 
 SANICHI 0.055-0.01 
 M3TECH 0.07+0.005 
 GOB 0.37-0.02 
 HSI-HGN 0.025-0.005 


1. MQ Trader - Introduction to MQ Trader Affiliate Program MQ Trader Announcement!