Journey to Wealth
Yinson Holdings Bhd - OUTPERFORM - 23 May 2012
News Yinson has fixed the issue price for its private placement of shares at RM1.70/share.
Recall that on 6th April 2012, the company had announced that it was proposing a private placement exercise of up to 12m shares.
Comments The price is similar to the issue price that the company indicated in its initial announcement for the private placement. Hence, there is no significant change to the view mentioned in our previous initiation report (dated 10 April 2012) onthis exercise.
The private placement will raise RM20.4m and boost the share base by 6.3% to 200.4m shares (from 188.4m shares).
Proceeds will mainly be used for acquisition of fixed assets and repayment of its creditors. In our view, the new funds will only be sufficient to fund the company's port development expenses since another floating production unit requires another sizeable funding exercise.
The exercise is expected to be completed by 2QFY12.
Outlook We foresee a 3-year net profit CAGR of 29.7% for the company and like management's prudent policies with regards to its expansions and project selections.
Given its close working relationship with Petrovietnam, we view it as a proxy to floating production opportunities (3 currently) from the burgeoning Vietnamese market
Forecast Estimated dilution to FY13-15E EPS forecasts will be around 5.1-5.5%, due to the increase in the share base.
Rating MAINTAIN OUTPERFORM
Valuation Our Sum-of-Parts (SOP) fair value is now RM2.25, post placement (RM2.29 pre placement). Risks 1) Significant reliance on Petrovietnam could result in a lack of jobs if the relationship sours, 2) high capex requirements for the industry could strain the balance sheet and 3) contractual and project execution risks from its floating production unit business.
Source: Kenanga
Related Stocks
| Chart | Stock Name | Last | Change | Volume |
|---|
Market Buzz
2024-11-24
YINSON2024-11-22
YINSON2024-11-22
YINSON2024-11-22
YINSON2024-11-21
YINSON2024-11-21
YINSON2024-11-21
YINSON2024-11-20
YINSON2024-11-20
YINSON2024-11-20
YINSON2024-11-20
YINSON2024-11-19
YINSON2024-11-19
YINSON2024-11-19
YINSON2024-11-18
YINSON2024-11-18
YINSON2024-11-18
YINSON2024-11-18
YINSON2024-11-18
YINSON2024-11-15
YINSON2024-11-15
YINSON2024-11-15
YINSON2024-11-15
YINSON2024-11-14
YINSON2024-11-14
YINSON2024-11-14
YINSON2024-11-13
YINSON2024-11-13
YINSON2024-11-12
YINSON2024-11-12
YINSONMore articles on Journey to Wealth
Ekovest: No plan to launch another offer for Iskandar Waterfront City
Created by kiasutrader | Mar 29, 2018
Kenanga Research - On our Portfolio - Parliament dissolution around the corner?
Created by kiasutrader | Mar 25, 2013
Plantation Sector - Proposed accounting standard scrapped OVERWEIGHT
Created by kiasutrader | Mar 25, 2013
Pavilion Reit - Limited upside, earnings upside have been priced in HOLD
Created by kiasutrader | Mar 25, 2013
Discussions
Be the first to like this. Showing 0 of 0 comments
Post a Comment
Featured Posts
Latest Videos
Apps
Top Articles
1
2
4
save malaysia!
Visa-free travel to China extended for Malaysians to 30 days
5
6
7
Good Articles to Share
8
Good Articles to Share
Four convicted in Spain over homophobic murder that sparked nationwode protests
#
Stock
Score
Daily Stocks
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Featured Advertisers / Partners
Ride The Bull Short The Bear
CS Tan
4.9 / 5.0
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
