According to one result1, the ROE (return on equity) for Yinson Holdings Berhad is 8.3% based on the trailing twelve months to October 20221. This means that for every MYR 1 worth of shareholders’ equity, the company generated MYR 0.083 in profit. According to another result2, this ROE is lower than the industry average of 10.6% for oil and gas companies2. However, it is also higher than the cost of equity of 7.9% for Yinson Holdings Berhad2. This means that the company is creating value for its shareholders.
One possible reason for the low ROE compared to its peers is that Yinson Holdings Berhad uses a high amount of debt to increase returns. It has a debt to equity ratio of 1.50, which means that it has more debt than equity in its capital structure1. This could increase its financial risk and lower its profitability in times of economic downturn or rising interest rates.
Depreciation is not a concern, as the profit is already net of depreciation. 1) Rental yield for a landed property may be is only 2%. 2) Rental yield for a condo may be higher at 4%. 3) Rental yield for a car may be higher than 20%.
It does, emotionally. So far so good hope I’m not missing anything. To be fair relative to the broader market, it is what it is, Agogo included. Its appeal is the pristine track record
This was an excellent company 5 years ago, but now it became too expensive. No longer a story. Tough reality. But I went through the documents online and still a buy in my eyes. Revenue is the key to value here.
Barring a full blown crisis, net positive, fundamental wise
1. Not affected by short-term oil fluctuations. 100B order book sufficient to ride out any oil crisis in the event of prolonged downturn
2. Business model is built on debt. Bank crisis you are happier to owe money. Financial crisis Fed slash rates lower debt cost, while revenue stable/ strong counter-parties as proven over negative oil price period.
That's on the business aspect. Share price wise, whole market down it won't be up. No need ask lol
@zhexiangxd Yinson is a company with super high debt ratio, almost 30% PBIT is paid to finance interest, any increased in interest rate and cost will wipe out all the profit. Better run now, oil industry looking so bad now...
You should ask instead why EPF holds almost 17% or >$1B in 1 Yinson among almost a thousand Bursa counters, and 1 which has no national security significance nor bumi agenda
Yinson has been recognised as a ‘ESG Industry Top Rated Company’ by global ESG Risk Rating agency, Morningstar Sustainalytics. This prestigious recognition reflects Yinson’s strong performance in environmental, social and governance (ESG) aspects, as well as its commitment to sustainability.
price doesn't seem to reflect value nowadays i sold off my load @2.66 few weeks ago and re-enter yesterday, think need to observe a few months before rise
Over time however it can be seen that Yinson always retraces from highs and next round go higher. This can be easily justified because Yinson has been growing profits consistently, and now more than ever things are coming to fruition. The question is to what extent this has been priced in
If warrants do break below 50cents, it's a great offer for risk takers. I think anything below 0.710 is quite safe, implying mother share conversion of $3.00 by Jun'25. Good odds for Yinson to have already zoomed pass $3.00 should it successfully execute its plans. This has to be one of the most fundamentally sound warrant play on Bursa right now, please correct me if you think otherwise
The low premium appears to a mismatch to me. We have about >4x gearing on a 20% premium warrant when mother share has retraced. Yinson itself is highly geared. And then you have a warrant that offers another 4x leverage. If you buy on margin, another 2x leverage. It's quite possible to structure a highly leveraged long position on Yinson by paying a bit more now in premium and interest cost, if one is bullish on FPSOs at large
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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....
UncleFollower
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Posted by UncleFollower > 2023-02-28 13:10 | Report Abuse
Why buy Velesto, Armada, when there is Yinson?