YINSON HOLDINGS BHD

KLSE (MYR): YINSON (7293)

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Last Price

2.35

Today's Change

-0.09 (3.69%)

Day's Change

2.35 - 2.42

Trading Volume

3,562,900


5 people like this.

4,002 comment(s). Last comment by CharlesT 1 minute ago

OTB

11,020 posts

Posted by OTB > 2024-01-05 09:47 | Report Abuse

我等到花兒也謝了.
Hope that I do not need to wait for 3 years.

I am very disappointed on this stock despite the net earning (PAT) grows at 27%, 46% and 63% for FY 2022, FY 2023 and FY 2024 respectively.
Presently at 2.59, the share price of Yinson is trading at a PER 8.35.
If using the average PER=13.15, Yinson should be trading at 4.07 in FY 2024.
The present share price of Yinson at 2.59 is really undervalued, no reason for such a low price.
Hope for better luck in 2024.
Thank you.

xiaoeh

2,085 posts

Posted by xiaoeh > 2024-01-05 10:09 | Report Abuse

Posted by OTB > 16 minutes ago | Report Abuse
Presently at 2.59, the share price of Yinson is trading at a PER 8.35.
If using the average PER=13.15, Yinson should be trading at 4.07 in FY 2024.

Dear OTB
May i know how your PER=13.15 come about?
any justifiable for that?

OTB

11,020 posts

Posted by OTB > 2024-01-05 10:13 | Report Abuse

PER = 13.15 is the average PER for FY 2022 and FY 2023.

Please read my previous postings quoted below.
FY/PAT/Growth/Price/EPS/PER
FY2022/401/27%/1.96/0.13/15.08
FY2023/586/46%/2.39/0.21/11.22
FY2024F/956/63%/2.45/0.31/7.85
The average PER for the last 2 years is 13.15.
The PAT grows at 27%, 46% and 63% for FY2022, FY2023 and FY2024 respectively.
Presently at 2.45, the share price of Yinson is trading at a PER 7.85.
If using the average PER=13.15, Yinson should be trading at 4.07 in FY 2024.
The present share price of Yinson at 2.45 is really undervalued, no reason for such a low price.
Hope for better luck in 2024.
Thank you.

xiaoeh

2,085 posts

Posted by xiaoeh > 2024-01-05 10:16 | Report Abuse

Noted and Thanks

Posted by Permutation > 2024-01-05 12:01 | Report Abuse

@ OTB, I believe you are recommending a very good counter here. Perhaps we could see a good run going forward soon.

Posted by BursaVulture > 2024-01-06 22:02 | Report Abuse

@OTB

On the company/founder not supporting the price... if you mean not pushing it, then it is the right thing to do. It depends on how far back you look or when you started investing. Right after RI, the price went down to RM1.80, the company bought back alot of shares, go check the buyback history, they bought back so much to the point where some even questioned them during AGM.

The founders also subscribed to the RI, in the millions. If they dont believe in the company, they would not have put in hundred of millions of their own money into their own company.

Maybe it will fly, maybe it won't. Time will tell.



OTB

11,020 posts

Posted by OTB > 2024-01-06 22:34 | Report Abuse

Dear BursaVulture,
Thank you for your information, noted.

I believe the fundamental of Yinson is very good.
PAT for the next 3 years will be very good.
PAT will be at least > 1 billion a year for the next few years.
This stock is a longer term investment, I believe this stock will be included as a component stock of FBMKLCI index in 2027 after most of debts are cleared.
I believe the CEO is very capable to generate profit for Yinson.
This CEO makes Yinson able to secure many FPSO projects or contracts in the international market.
This CEO makes Yinson to be one of the best managed company in FPSO projects.
Hope Yinson able to perform well in term of share price and the CEO able to create wealth for Yinson in the stock market.
Thank you.

xiaoeh

2,085 posts

Posted by xiaoeh > 2024-01-06 23:07 | Report Abuse

Dear OTB
Just want to learn from you and know your thoughts on the debts level

No doubts Revenue and Net Earning increase tremendously in 2023
but at the same time total debts/Net debts also reaching unprecedentedly high
the same goes to its -ve FCF
Should we be worried about its debts level?

OTB

11,020 posts

Posted by OTB > 2024-01-07 00:09 | Report Abuse

Dear xiaoeh,
1.) The debt or loan around 11 billion is too high. However, the debt is high for this type of industry (FPSO business).
2.) This high debt will be cleared in 5 to 7 years because Yinson will still need to take up at least 1 FPSO project in every year to keep the operations busy.
3.) Yinson needs loans to finance the construction of FPSO vessels. The loan will be cleared within 5 to 7 years.
4.) There will not be any cash flow from operations in the financial statement because of high debt.
5.) Yinson is a strong growth stock, it used the loans or borrowings to grow the company. High gearing can be its strength or weakness depend on the angle you look at the stock.
6.) Almost all FPSO operators have high debt, it is the nature of FPSO business.

I believe the high debt of Yinson is acceptable for 2023 and 2024 because 3 of FPSO contracts are secured during this period.
The debt will be lower after 2026 once all 3 main FPSO vessels are delivered.

This FPSO business is just like a toll road, you need capital to construct the road before you can collect the toll to repay the debt.
Likewise for FPSO business, you need loans or capital to construct the vessel, then you will use the revenue collected from charter service to repay the loan.
The revenue from charter service can be collected after 3 years once the FPSO vessel is delivered.
Most of the time, the loan will be cleared within 5 to 7 years, once the loan is cleared, it is pure (100%) profit you will get in the next 10 to 15 years.
Hence invest in Yinson share is a longer term investment.
I believe high debt situation will be there for next 5 to 7 years.
Thank you.

xiaoeh

2,085 posts

Posted by xiaoeh > 2024-01-07 10:33 | Report Abuse

Noted and Thanks OTB

Posted by Permutation > 2024-01-07 17:45 | Report Abuse

If Yinson can deliver an EPS of about 30sen for the next 5 to 7 years, and also able to clear the debt in 5 to 7 years, according to Mr OTB, then potentially, yes potentially, Yinson can be a cash cow after 5 to 7 years? Do I interpret your analysis correctly OTB ?

OTB

11,020 posts

Posted by OTB > 2024-01-07 19:22 | Report Abuse

Yes.
Most of the time, the loan will be cleared within 5 to 7 years, once the loan is cleared, it is pure (100%) profit you will get in the next 10 to 15 years.
Hence invest in Yinson share is a longer term investment.
Thank you.

ImCK

2,883 posts

Posted by ImCK > 2024-01-14 00:53 | Report Abuse

negative cash flow also said good debt keep increasing

speakup

25,013 posts

Posted by speakup > 2024-01-14 14:26 | Report Abuse

In a super bull market like what we are in now, nobody cares about fundamentals

Posted by Fabien _the efficient capital allocator > 2 months ago | Report Abuse

Yinson Renewables acquires 97MWp Matarani solar project in Peru

Yinson Holdings Bhd’s renewables business unit, Yinson Renewables has completed the acquisition of the 97 MWp Matarani Solar Project in Peru from Grenergy Renewables.

The project is located in the Mollendo desert in the Arequipa region, one of the world’s highest solar irradiation areas, Yinson Renewables said in a statement.

Most of the project’s energy has been contracted through a power purchase agreement (PPA) with a bankable off-taker for the next 15 years,

Yinson Renewables said Project Matarani is currently under construction and is expected to enter commercial operation by third quarter of 2024.

In addition to the SPV acquisition for about US$25mil, Grenergy is providing a full turnkey engineering, procurement, and construction contract for the construction of the project and is entitled to further earnouts (collectively valued at about US$65mil).

Grenergy will also provide the operation and maintenance service for the plant for the first two years.

Once in operation, Project Matarani will inject about 260 GWh of renewable energy into the Peruvian grid annually, enough to satisfy the energy needs of about 62,000 Peruvian households and prevent the emission of more than 56,000 tonnes of CO2 per year.

yong1985cm

213 posts

Posted by yong1985cm > 2 months ago | Report Abuse

yinson look very good on fundamental except for its cash flow and ROIC.

Mabel

23,175 posts

Posted by Mabel > 2 months ago | Report Abuse

Oil prices are rising for the fourth day in a row as a result of continued tensions in the Middle East and robust U.S. demand.

Shipping giants such as Maersk have voiced concerns that the Red Sea shipping crisis may continue throughout 2024 – a worrying prospect for not just shippers, but for Western leaders in general.

Geopolitical upheaval is one of the reasons why JP Morgan sees a $10 upside for oil prices. The investment bank sees tightening supply and robust demand this Spring. A $10 jump in crude prices could be good news for North American oil companies.

Mabel

23,175 posts

Posted by Mabel > 2 months ago | Report Abuse

#speakup In a super bull market like what we are in now, nobody cares about fundamentals
14/01/2024 2:26 PM

Yinson is a company that provides offshore production and renewable energy solutions, such as floating production storage and offloading (FPSO) vessels, floating storage and offloading (FSO) vessels, and wind and solar power plants. Here are some of the key financial ratios and cash balance of Yinson as of October 2023::

*Liquid Ratios*: These ratios measure the ability of a company to meet its short-term obligations. Some of the common liquid ratios are:

Current Ratio: This ratio compares the current assets and current liabilities of a company. It indicates the liquidity and working capital position of a company. A higher current ratio means that the company has more current assets than current liabilities, which implies that it can pay off its debts easily. A lower current ratio means that the company has less current assets than current liabilities, which implies that it may face difficulties in paying off its debts. The current ratio of Yinson as of October 2023 was 0.84, which means that it had 0.84 times more current assets than current liabilities.

Quick Ratio: This ratio is similar to the current ratio, but it excludes the inventory from the current assets, as inventory may not be easily converted into cash. It indicates the liquidity and solvency position of a company. A higher quick ratio means that the company has more liquid assets than current liabilities, which implies that it can pay off its debts quickly. A lower quick ratio means that the company has less liquid assets than current liabilities, which implies that it may face challenges in paying off its debts. The quick ratio of Yinson as of October 2023 was 0.83, which means that it had 0.83 times more liquid assets than current liabilities.

Mabel

23,175 posts

Posted by Mabel > 2 months ago | Report Abuse

*Profitability Ratios*: These ratios measure the ability of a company to generate profits from its operations. Some of the common profitability ratios are:

Gross Margin: This ratio compares the gross profit and the revenue of a company. It indicates the efficiency and profitability of a company’s production process. A higher gross margin means that the company has a higher percentage of revenue left after deducting the cost of goods sold, which implies that it can generate more profits from its sales. A lower gross margin means that the company has a lower percentage of revenue left after deducting the cost of goods sold, which implies that it has less profits from its sales. The gross margin of Yinson as of October 2023 was 28.34%, which means that it had 28.34% of revenue left after deducting the cost of goods sold.

Net Margin: This ratio compares the net income and the revenue of a company. It indicates the profitability and performance of a company. A higher net margin means that the company has a higher percentage of revenue left after deducting all the expenses, taxes, and interest, which implies that it can generate more profits from its sales. A lower net margin means that the company has a lower percentage of revenue left after deducting all the expenses, taxes, and interest, which implies that it has less profits from its sales. The net margin of Yinson as of October 2023 was 7.15%, which means that it had 7.15% of revenue left after deducting all the expenses, taxes, and interest.

Mabel

23,175 posts

Posted by Mabel > 2 months ago | Report Abuse

*Solvency Ratios*: These ratios measure the ability of a company to meet its long-term obligations. Some of the common solvency ratios are:

Debt to Equity Ratio: This ratio compares the total debt and the total equity of a company. It indicates the leverage and risk of a company. A higher debt to equity ratio means that the company has more debt than equity, which implies that it relies more on external financing and has a higher financial risk. A lower debt to equity ratio means that the company has more equity than debt, which implies that it relies more on internal financing and has a lower financial risk. The debt to equity ratio of Yinson as of October 2023 was 180.7%, which means that it had 180.7% more debt than equity.

Interest Coverage Ratio: This ratio compares the earnings before interest and taxes (EBIT) and the interest expense of a company. It indicates the ability of a company to pay its interest on debt. A higher interest coverage ratio means that the company has more earnings than interest, which implies that it can pay its interest easily and has a lower default risk. A lower interest coverage ratio means that the company has less earnings than interest, which implies that it may struggle to pay its interest and has a higher default risk. The interest coverage ratio of Yinson as of October 2023 was 2.56, which means that it had 2.56 times more earnings than interest.

Mabel

23,175 posts

Posted by Mabel > 2 months ago | Report Abuse

Activity Ratios: These ratios measure the efficiency and productivity of a company’s operations. Some of the common activity ratios are:

Inventory Turnover: This ratio compares the cost of goods sold and the average inventory of a company. It indicates how quickly a company sells its inventory. A higher inventory turnover means that the company sells its inventory faster, which implies that it has a higher demand and a lower inventory holding cost. A lower inventory turnover means that the company sells its inventory slower, which implies that it has a lower demand and a higher inventory holding cost. The inventory turnover of Yinson as of October 2023 was 0, which means that it did not have any inventory.

Asset Turnover: This ratio compares the revenue and the average total assets of a company. It indicates how efficiently a company uses its assets to generate sales. A higher asset turnover means that the company generates more sales per unit of asset, which implies that it has a higher asset utilization and a lower asset investment. A lower asset turnover means that the company generates less sales per unit of asset, which implies that it has a lower asset utilization and a higher asset investment. The asset turnover of Yinson as of October 2023 was 0.37, which means that it generated 0.37 units of sales per unit of asset.

Mabel

23,175 posts

Posted by Mabel > 2 months ago | Report Abuse

*Valuation Ratios*: These ratios measure the attractiveness and value of a company’s stock. Some of the common valuation ratios are:

Price to Earnings Ratio: This ratio compares the market price and the earnings per share of a company. It indicates how much investors are willing to pay for each unit of earnings. A higher price to earnings ratio means that the company has a higher market value relative to its earnings, which implies that it is more expensive and has higher growth expectations. A lower price to earnings ratio means that the company has a lower market value relative to its earnings, which implies that it is cheaper and has lower growth expectations. The price to earnings ratio of Yinson as of October 2023 was 10.23, which means that investors were willing to pay 10.23 times more for each unit of earnings.

Price to Book Ratio: This ratio compares the market price and the book value per share of a company. It indicates how much investors are willing to pay for each unit of equity. A higher price to book ratio means that the company has a higher market value relative to its equity, which implies that it has more intangible assets and higher growth potential. A lower price to book ratio means that the company has a lower market value relative to its equity, which implies that it has more tangible assets and lower growth potential. The price to book ratio of Yinson as of October 2023 was 1.89, which means that investors were willing to pay 1.89 times more for each unit of equity.

Cash Balance: This is the amount of cash and cash equivalents that a company has at a given point of time. It indicates the liquidity and solvency of a company. A higher cash balance means that the company has more cash available to meet its obligations and invest in its growth. A lower cash balance means that the company has less cash available to meet its obligations and invest in its growth. The cash balance of Yinson as of October 2023 was RM2.75 billion, which means that it had RM2.75 billion of cash and cash equivalents.

Mabel

23,175 posts

Posted by Mabel > 2 months ago | Report Abuse

*Summing up*:

Based on the financial ratios and cash balance of Yinson as of October 2023, it seems that Yinson is a good company to invest in, with some caveats. Here are some of the reasons why Yinson is a good investment:

Yinson has been growing its revenue and earnings at a high rate, especially from its offshore production segment, which accounts for most of its income. This shows that Yinson has a strong market position and competitive advantage in the FPSO industry, which is expected to grow in the future as the demand for offshore oil and gas increases.

Yinson has a high gross margin and net margin, which indicate that it has a high profitability and efficiency in its production process and operations. This also shows that Yinson has a low cost structure and a high value proposition for its customers, which can enhance its customer loyalty and retention.

Yinson has a low price to earnings ratio and price to book ratio, which indicate that it is undervalued and has a high growth potential. This also shows that Yinson has a low market expectation and a high upside potential, which can attract value investors and long-term investors.

Yinson has a high cash balance, which indicates that it has a high liquidity and solvency. This also shows that Yinson has a strong financial position and flexibility, which can enable it to meet its obligations, invest in its growth, and weather any market uncertainties.

However, there are also some caveats and risks that investors should be aware of before investing in Yinson, such as:

Yinson has a high debt to equity ratio and a low interest coverage ratio, which indicate that it has a high leverage and risk. This also shows that Yinson relies heavily on external financing and has a high interest burden, which can affect its cash flow and profitability in the long run.

Yinson has a low current ratio and quick ratio, which indicate that it has a low liquidity and working capital. This also shows that Yinson may face difficulties in meeting its short-term obligations and managing its cash cycle, which can affect its operational efficiency and performance.

Yinson has a low inventory turnover and asset turnover, which indicate that it has a low efficiency and productivity in its operations. This also shows that Yinson may have a low demand and a high inventory holding cost, which can affect its sales and margins.

Yinson faces various external challenges and uncertainties, such as the volatility of oil prices, the competition from other FPSO players, the regulatory and environmental pressures, and the geopolitical and pandemic risks, which can affect its business outlook and performance.

To Our Success !

Captain Mabel Meow

stncws

10,255 posts

Posted by stncws > 2 months ago | Report Abuse

新年快乐

stockraider

31,556 posts

Posted by stockraider > 2 months ago | Report Abuse

Yinson run the risk of serba, rapid, widad, Ynh which are high risk gambling speculative stocks mah!
The correct strategy is to avoid mah!

JUST SELL & CHANGE TO INSAS MAH!
Investors of Insas hathaway can afford to only invest in 1 stock that is insas loh!

Why should they look elsewhere when all the insas fundamental numbers are so positive compelling base on share price of rm 1,21 leh ?

The Insas figures are as follows;
1. Insas net cash is rm 1.26 per share
2. insas net cash equivalent per share Rm 1.40
3. Insas nta per share is Rm 3.56
4. Insas RNAV per share after taken account of Inari & M&A is Rm 7.00 per share
5. Insas RNAV per share after taken account of its properties value Rm 9.00 per share.
6. Insas eps Rm 0.19 share.
7. Insas cash generation per share Rm 0.22
8. Insas div per share Rm 0.025
9. Insas Nta growth per share (base buffet measurement of growth} Rm 0.22 pa.

a.Notice that insas net cash equivalent of rm 1.40 exceed share price, that means u can buy whole insas & still collect additional Rm 0.19 cash per share on top of whole company.
b. Based on NTA without any revaluation insas is worth Rm 3.56 per share.
c. If u factor in Inari & M&A hidden reserve plus insas NTA , u will get Rm 7.00 per share.
d. If u factor in { item c } plus other assets & revise property undervalue u get Rm 9.00 a share
5. Insas PE is 6.4x.
6. Insas cash generation per share is rm 0.22 giving u a yield of 18% pa.
7. Insas div yield is rm 0.025 per share or 2.1% pa.
8. Insas growth rate pa is 18%. Note this very powerful factor as insas cash generation is 18% pa and growth rate is 18% pa, that means all insas growth is back up by cash generation equivalent, this is a very powerful factor to the sustainability of cash flow and growth rate.

Conclusion: Having gone thru the financial strength of insas, can u find any other stocks more powerful than insas fundamentally at the current share price leh ?
The answer is none loh!

Thus with insas so attractive fundamentally why should u sell insas & look to buy other stocks leh ?
U should be buying more insas right now bcos of very big margin of safety loh!

Mabel

23,175 posts

Posted by Mabel > 2 months ago | Report Abuse

Buy inari directly mah..

You want to tango with your beautiful and sexy girl friend.. Not with her mother..

Trust me..

Meow

OTB

11,020 posts

Posted by OTB > 2 months ago | Report Abuse

Posted by stockraider > 2 hours ago | Report Abuse
Yinson run the risk of serba, rapid, widad, Ynh which are high risk gambling speculative stocks mah!
--------------------------
stockraider has became a shameless liar now.
How to compare Yinson to serba, rapid, widad, Ynh which are high risk gambling speculative stocks ?
I believe Yinson will make about 1 billion profit (PAT) in FY 2024.
How many stocks listed in KLSE can make 1 billion profit ? Ans : only a handful of stocks.
All 10 analysts from all brokers are recommending a buy on Yinson.
stockraider simply tells lies about Yinson without any fact and figure.
Really shameful to past his uncalled remarks.
Do not badmouth any stock at the expense of many poor investors here. It is a bad karma to badmouth or tell lies about Yinson without true facts and figures.
stockraider will be punished for spreading lies here.

I have both Insas as well as Yinson shares.
I invest in KLSE, I will ensure my stocks selected are very good in fundamentals.
Is Yinson a good fundamental stock ?
Please read all recommendation reports from Maybank, Kenanga, Ambank, RHB and UOB.
I believe Yinson will make about 1 billion profit (PAT) in FY 2024.
All 10 analysts from all brokers are recommending a buy on Yinson.

I am very disappointed with stockraider because he equates Yinson to Serba, Rapid, Widad and Ynh which are not good fundamental stocks.
stockraider spreads lies on Yinson at the expense of all poor investors. It is a very bad karma.
I hope stockraider will be punished for bad mouthing.

Mabel

23,175 posts

Posted by Mabel > 2 months ago | Report Abuse

Buy inari directly mah..

You want to tango with your beautiful and sexy girl friend.. Not with her mother..

Trust me..

Meow

stockraider

31,556 posts

Posted by stockraider > 2 months ago | Report Abuse

Do u know who the 1st person to shout avoidance of serba, ??
It is raider mah!

Do u know who is the 1st person to shout avoidance of megan media b4 it collapse leh ?
It is General Raider mah!

Do u know who is the 1st person to shout avoidance of Airasia/Capital A when it is riding high with mkt cap above Rm 10b to Rm 15b leh ??
It is General Raider loh!

What is the similiarity of Serba, Megan Media, Airasia, YNH, Widad & Rapid b4 it collapse leh ??
It is heavy in debts & share price goreng to very high price in order to bring maximum damage to the company as well as the investors loh!

The main reasons why these companies collapse, is bcos they are addicted to very very high toxic debts within a very short period that beyond the sustainable of its cashflow generation and its strength of its balance sheet loh!

Take airasia for example it used to make a few billion ringgit at its height but the profits are generated by huge acquisition & disposal of aircrafts that are speculative & unsustainable in nature loh!
In airasia it is aircrafts whereas in yinson is FPSO loh! both talk up very leverages in which they do not need to do loh!
But yet these companies took this exceptional risk which resulted in eventual self destruction mah!
And did the stockbroking analyst highlighted the self destruction nature of airasia, no loh.....until very late loh!

Coming back to Yinson, it has Rm 16.2b of borrowing v its cash of only rm 2.8b loh!
Another destructive aspect of Yinson it has finance lease receiveable of Rm 8.2b , how does this come about ? Ans; Due to over funding of its long term customers loh!
(By Right Yinson Customer should fund their capex expansion thru their bank not make use of Yinson mah!}

Thus raider highlighted the balance sheet of Yinson is not well manage & not prudent n very risky log!

With the huge debts of Yinson around Rm 16b, u can actually afford to buyout the whole ambank with a mkt cap of rm 14.3b mah!

What the hell yinson dealing with debts of Rm 16b leh ??

Just ask yourself on Yinson this Buffet self tested question & answer leh?.
"Like case of Insas growth rate pa is 18%. Note this very powerful factor as insas cash generation is 18% pa and growth rate is 18% pa, that means all insas growth is back up by cash generation equivalent, this is a very powerful factor to the sustainability of cash flow and growth rate." which is No in Yinson case mah!

stockraider

31,556 posts

Posted by stockraider > 2 months ago | Report Abuse

Again alot of people has this misconception of "good loans" v "bad loans" loh!
Thereotically,
Good loans are loans taken for productive purpose that expand & grow the business such term loan to finance factory & business and working capital loh!
Bad loans are taken for non productive purpose such as car loans, consumer loans, credit card loans etc!

The definition is so simplistic, why every year the banks have to take a charge of Rm billion & billion bad loans taken for productive purpose leh ?
The answer is not simple loh! Billion & Billion of loans taken for productive also can failed mah!

The chief reasons whether the loans is productive it depend on circumstances...for example too much capacity, sudden fall in demand, unable to complete the project, business disputes, sudden collapse of the economy surely some cannot be forseen loh!

Thus a good management must ensure that loan taken must not be excessive & over the capacity of the co to service & in other words one should not overtrade loh!

For the bank a good loans is a loan taken & well service whether it is a productive or non productive loan mah!

One good example of Yinson is its over financing of its customers to tune of more than Rm 8 billion in terms of finance lease receivable loh!
Why cannot the customer borrow from banks, which give so much lower interest compare to Yinson leh ? Surely this indicates inherent weakness to the business & the financial position of its customers loh!

In addition over trading may lead to the financial collapse of airasia in terms of huge funding for its excessive number of aircraft purchase loh!

Surely in the case of Yinson....why did it ,taken so much excessive loan to do so many Fpso project which most under WIP that is not generating any profit or cashflow yet leh ?

Can they see, just a minor weaknesses in the supply chain will cause the whole FPSO funding collapse leh ?
Just look at SAPNRG at its height, no one dare to say any wrong of the Group which has capitalization Rm 34b, coincidently the same mkt cap of YTL POWER today loh!

Today Sapnrg collapse to mkt cap of Rm 1b, the collapse due to over trading & the same risk may apply to YTl Power too loh!

Mabel

23,175 posts

Posted by Mabel > 2 months ago | Report Abuse

Haha Raider, Mabel Sapnrg holding cost is at 3 sen...Can't go wrong at this entry level.

Serba only left 2019 Bonus Issues Free Warrant..

Meow

OTB

11,020 posts

Posted by OTB > 2 months ago | Report Abuse

Posted by Mabel > 1 hour ago | Report Abuse
#MOBAjobg Gearing ratio (GR) as defined in AR = Net debt / Total Capital
Yinson = 0.55
SAPNRG = 1.41
AirAsia = 1.47
YTLp = 0.58
As a yardstick, GR that doesn’t exceed 0.50 is prudent.
12/02/2024 1:59 AM

Thank you MOBAjobg for this analysis. Let’s analyse the provided gearing ratios for the mentioned companies:

Yinson Holdings Berhad (Yinson):
Gearing Ratio (GR) = 0.55
Interpretation: Yinson’s gearing ratio indicates that 55% of its capital is funded by debt, while the remaining 45% comes from equity.
Prudence Assessment: Yinson’s gearing ratio is within the yardstick of 0.50, suggesting a relatively conservative financial structure.

SAPURA ENERGY BERHAD (SAPNRG):
Gearing Ratio (GR) = 1.41
Interpretation: SAPNRG has a higher gearing ratio, with 141% with a significant reliance on debt financing.
Prudence Assessment: SAPNRG’s gearing ratio exceeds the yardstick of 0.50, indicating a higher degree of financial leverage.

AirAsia Group Berhad (AirAsia):
Gearing Ratio (GR) = 1.47
Interpretation: AirAsia’s gearing ratio stands at 147%, with a significant reliance on debt financing.
Prudence Assessment: AirAsia’s gearing ratio exceeds the prudent threshold of 0.50, signalling higher financial risk.

YTL Power International Berhad (YTLp):
Gearing Ratio (GR) = 0.58
Interpretation: YTLp’s gearing ratio is 58%, indicating a balanced mix of debt and equity.
Prudence Assessment: YTLp’s gearing ratio is within the yardstick of 0.50, aligning with a prudent financial structure.

In summary:

Yinson and YTLp exhibit prudent gearing ratios within the threshold.

SAPNRG and AirAsia have higher gearing ratios, implying greater reliance on debt financing. That’s why both of them are classified as PN 17 Companies.

Remember that context matters, and industry norms play a role. Companies in different sectors may have varying acceptable gearing ratios. It’s essential to consider the specific industry, business model, and risk tolerance when assessing prudence.

In summary, debt financing involves borrowing with repayment obligations, while equity financing involves selling ownership stakes without repayment requirements.

Each method has advantages and trade-offs, and companies choose based on their specific needs and financial goals

OTB

11,020 posts

Posted by OTB > 2 months ago |

Post removed.Why?

stockraider

31,556 posts

Posted by stockraider > 2 months ago | Report Abuse

4 major sign of financial danger in respect of Yinson financial health

1. negative working capital of Rm 646m.
2. Very High finance lease receivable of Rm 8.2b (An indication of customer using Yinson as a soorchaii financier on its high capex investment}
3. High Gearing ratio of 2.94x.
4, Sharp growing negative operating cashflow of Rm1.6b

U see the main issue for a sustainable longterm business survival is positive cashflow....cashflow & cashflow and these ingradients are missing in Yinson loh!

Yes Profit is important.....but compare to the liquidity health & cashflow are very essential without it your profit could be just a temporary mirage to the company good prospect loh!

Financial liquidity & cashflow will be yinson major risk bcos right now it is overtrading as it being greedy & biting more than it can chew in pursuit of poor qualty profits....this situation cannot be sustained loh!

Posted by Investar2862 > 2 months ago | Report Abuse

"2. Very High finance lease receivable of Rm 8.2b (An indication of customer using Yinson as a soorchaii financier on its high capex investment}"

So, the BANKS that financing YINSON must be the biggest SoorChaii ??? No???

YINSON must be damn good in convincing the BANKS to give out the loans to the smaller soorchaii 😃

I guess, Yinson didn't bothered to convince the super smart small investors to invest in their company ,,, believing that they should be able to think/see the obvious 😁

OTB

11,020 posts

Posted by OTB > 2 months ago | Report Abuse

A person has a low IQ,
A person talks without facts and figures,
A person talks nonsense and telling lies,
A person likes to twist the story to suit him without facts and figures,

If you meet such person in I3, it is best you ignore him.
Let him syok sendiri.
Thank you.

OTB

11,020 posts

Posted by OTB > 2 months ago | Report Abuse

Yinson has been awarded the ‘Industry Excellence Award’ under the energy sector at MSWG-ASEAN Corporate Governance Award 2021, in recognition of the Group’s exemplary corporate governance disclosure and practices amongst Malaysian public listed companies.
I believe the management of Yinson can be trusted.
Thank you.

OTB

11,020 posts

Posted by OTB > 2 months ago | Report Abuse

FPSO MQ - The oil company involved is PetroBras.
FPSO Atlanta - The oil company involved is PetroBras.
FPSO Agogo - The oil company involved is Eni (Italy oil company) and BP.

Are these oil companies "con" company try to cheat Yinson ?

These oil companies want FPSO vessels urgently because the cost of oil production using FPSO system is less than USD 10 per barrel.
The price of crude oil is about USD 80 per barrel.
If the FPSO vessels can be ready now, these oil companies are laughing all the way to the bank.

Talk with facts and figures, not the autie selling vegetable in Pudu market, her words has no value and credibility.
Uni, BP and Petrobras are creditable oil companies in the world.
Thank you.

Mabel

23,175 posts

Posted by Mabel > 2 months ago | Report Abuse

OTB FPSO MQ - The oil company involved is PetroBras.
FPSO Atlanta - The oil company involved is PetroBras.
FPSO Agogo - The oil company involved is Eni (Italy oil company) and BP.

Are these oil companies "con" company try to cheat Yinson ?

These oil companies want FPSO vessels urgently because the cost of oil production using FPSO system is less than USD 10 per barrel.
The price of crude oil is about USD 80 per barrel.
If the FPSO vessels can be ready now, these oil companies are laughing all the way to the bank.

Talk with facts and figures, not the autie selling vegetable in Pudu market, her words has no value and credibility.
Uni, BP and Petrobras are creditable oil companies in the world.
Thank you.

12/02/2024 7:08 PM

Thank you OTB..

In addition to the above, Yinson Holdings Berhad has the following FPSO (Floating, Production, Storage, Offloading) units:

Operational FPSO Units:

1. FSO PTSC Bien Dong 01: Located in Vietnam.
2. FPSO PTSC Lam Son: Also located in Vietnam.
3. FPSO John Agyekum Kufuor: Located in Ghana.
4. FPSO Abigail-Joseph: Operational location in Nigeria.
5. FPSO Anna Nery: Operational location in South America East Coast
6. FPSO Maria Quitéria: Operational location in Brazil.

These FPSO units play a crucial role in offshore oil and gas production, contributing to global energy stability. Under Construction FPSO Units: These FPSO units operate 24/7, withstanding harsh weather conditions and ensuring stable energy production. Yinson maintains a fleet uptime of above 99% since 2014.

To Our Success

Meow

OTB

11,020 posts

Posted by OTB > 2 months ago | Report Abuse

Dear Mabel,

I think you missed out one FPSO.

FPSO Helang. Malaysia. 100% stake.
https://www.bursamarketplace.com/mkt/tools/research/ch=research&pg=research&ac=656871&bb=669433
Contract value = USD 1.4 billion. 8 years firm and with 10 extension periods of one year each.
(2019 to 2027) Extension (2028 to 2037).
Annual (charter rate) revenue = USD 1400 million/8 = USD 175.00 million = RM 822.50 million (1 USD = RM 4.70)
PBT (40% of revenue) = 329.00 million
PAT (37% tax) = 207.27 million

Thank you.

Mabel

23,175 posts

Posted by Mabel > 2 months ago | Report Abuse

Thank you so much OTB for sharing.

Brilliant!

To Our Success !

Meow Meow Meow

Mabel

23,175 posts

Posted by Mabel > 2 months ago | Report Abuse

https://www.youtube.com/watch?v=CU62rxOZuZ0

Thank you so much OTB for sharing.

Brilliant!

Happy to be on board Yinson. So in total Yinson has 7 Long Term FPSO Contract with 3 Under Construction with more than 23 Billion Contracted Revenues.

Operational

1. FSO PTSC Bien Dong 01: Located in Vietnam.
2. FPSO PTSC Lam Son: Also located in Vietnam.
3. FPSO John Agyekum Kufuor: Located in Ghana.
4. FPSO Abigail-Joseph: Operational locationin in Nigeria.
5. FPSO Anna Nery: Operational location in South America East Coast
6. FPSO Maria Quitéria: Operational location in Brazil.
7. FPSO Helang. Malaysia. 100% stake.

Under Construction

8. FPSO MQ - The oil company involved is PetroBras.
9. FPSO Atlanta - The oil company involved is PetroBras.
10. FPSO Agogo - The oil company involved is Eni (Italy oil company) and BP.

Now Mabel is in love. When you are in love, the world seems like a great place to live in. Love has that effect on everyone. Life seems worthy of living and fate seems more giving. Being in love is therefore one of the most enriching and precious experiences of one's life. I really love this song...I hope you like it

To Our Success !

Meow

stockraider

31,556 posts

Posted by stockraider > 2 months ago | Report Abuse

After looking very carefully on Yinson weak cashflow, one can easily pick up very bad red flag as follows loh![

1. Finance lease receive for the 9 months (Rm 5.7b)
2. Additional Finance lease receive for the 9mths Rm 0.6
Negative cashflow for financing the huge capex its customer (Rm 5.1b)

As pointed out by OTB....he says this is use to finance Petrobas FPSO loh!

As raider says there is huge risk of Yinson being use as a sooorchaiii financier, enclose herewith is the doubts raider like to point out mah!;

1. Why did Petrobas want Yinson to finance, when it can definitely rate from the bank leh ?
2. What is the strength of brazil Macro economy of Brazil leh ?
3. What is the basic interest rate of brazil currency ?
4. What is Petrobas financial strength v Petronas leh ?

Answer
1. Most likely they use Yinson to finance bcos strategically Yinson to be over exposed in the the project & event the oil industry downtown or when brazil economy, they can squeeze Yinson balls for a very big discount to compensate for their potential losses mah!
2. Every body thought brazil is a very strong economy, but in fact it is not true loh!
It have Debt to Gdp of about 100% and Brazilian people are spendthrift & over in debted, in fact Brazil is much weaker compare to msia. Any down turn Brazil will be hit bad, and most of Latin Anerica is like that loh.....they like merry now & do not care about the future....just look at Argentina, Chile & Venezuela is the same mah!
3. The basic interest rates of Brazil fluctuate very violently from a low of low of 11% to a high 40% for the past 10 yrs. On top of that brazil inflation is close to 10% most of the time.........thus brazil has very high inflation loh! Yes Yinson may argue most of their project deal with USD loh....but put it this why loh....some of the cost may be in Brazilian Real. & if want to hedge it, may cost yinson financing cost close to 16% to 18% pa loh!
4.Petrobas financial strength is not that strong as compare to Petronas bcos it was set up not long compare to Petronas more than 50 yrs mah! Thus they always want to use Yinson the tender winner as a soorchaiii financier & risk taker mah! If Yinson do not want to be the Soorchaiii, they will be many other soorchaiii....thus it is Yinson type of culture that cause it to expose to high risk mah! Thats why Big Oil service Co use to be darling in Msia such as KNM, Armada and all Sapnrg all eventually crumble bcos of the violent nature of oil & gas business loh!

OTB claim that Yinson is different bcos it wins alot of accolades, but do not be fool loh!
Do u know that companies like sapnrg & Armada also won many accolades leh ??

Sapnrg at the height is inside the KLSE composite Index with mkt cap of Rm 36b. In fact SAPNRG is consider one of largest oil service co in the world and comparable to Haliburton of USA loh!
Msian Govt had been very proud of Sapnrg as one of malay control Co, to be so well known who make it in the world scene & won many many prestigious awards loh!

Then there is Armada the biggest FPSO operators in msia own by Ananda Krishnan (that time the richest man in Msia}. Armada mkt cap is close to Rm 26b at its height loh!
Bcos of Armada success.....they are very proud & expanded aggressively all over the world to Australia, Africa, Vietnam and Thailand loh!
Eventually Armada collapse, but the cause of the collapse is australia in which most Analyst think very highly, bcos it has a very good legal system and they deal with most reputable australia listed co mah!,
But still Armada kena played out loh! In fact Armada also lost in the Court case loh!
Just imagine , if this can happen in Australia which has a good legal system....the same thing can be more likely happened in Brazil.

Do u know....the oil industry has destroyed....Large malay co like Sapnrg and large india co armada & then it will be large chinese Co like Insas next loh!

Why Msia co fail in Oil & Gas ind whereas western co like haliburton succeed leh ??
This bcos this type of industry is highly legalistic loh!

U must take note, what OTB commend is too simplistic, it could be due to vested interest also loh!



..

OTB

11,020 posts

Posted by OTB > 2 months ago | Report Abuse

Do not know what is FPSO project, please do not comment.

A person has a low IQ,
A person talks without facts and figures,
A person talks nonsense and telling lies,
A person likes to twist the story to suit him without facts and figures.

If you meet such person in I3, it is best you ignore him.
Let him syok sendiri.
Thank you.

OTB

11,020 posts

Posted by OTB > 2 months ago | Report Abuse

Posted by Philip ( buy what you understand) > 1 month ago | Report Abuse

I am probably one of the largest long term investors in yinson and have been invested since 2012. All I can say is that it is more wise to look at yinson as a cyclical business that takes time to gestate and grow. You can take their initial foray into Vietnam as an example.

1. Get a contract with a clean and clear delivery date and good payment rate which is based on the contract value minus the ship construction cost in China.
2. Make sure that you get some advance to help you pay your way through the construction period where you still own the ship at the end.
3. Borrow money to fund the ship construction.
4. Gestate for the 3-5 years while you complete the fpso.
5. Get a very strong team to keep everything on time and on budget.
6. Get to first oil and keep production high.

From there rinse and repeat.

Yinson has done this very very well over the decade. And they are still keeping to this bread and butter business with good funding.

For me I will never know when the share price will go up, but I bought at a cheap price and will continue to hold as the fundamentals remain intact.

OTB

11,020 posts

Posted by OTB > 2 months ago | Report Abuse

I believe the CEO of Yinson is a capable and enterprising person.
He makes Yinson the best FPSO manager in the world ... I repeat ... the best in the world.
Hence 10 out 10 analysts in town recommended a buy on Yinson.
I buy Yinson because I believe in the analyst's report.

If Yinson suffers the same downfall like Sapnrg, I believe
1.) The owner of Yinson and family will be a bankrupt.
2.) EPF will lose a lot of money.

I believe the owner of Yinson will know the consequence, he knows his risk.
I believe Yinson will make a PAT of around 1 billion in FY 2024 results.
FY 2024 (end January 2024) result will be released in March 2024.

IB reports and target price projections
IB/FY2024/FY2025/TP
MBB/872/1008/5.05
UOB/648/854/3.95
KEN/603/731/3.65
AMI/823/798/3.98
CIMB/1036/982/3.57

Good luck.
Thank you.

Posted by Permutation > 2 months ago | Report Abuse

To make a PAT of RM1 Billion for FY2024, Yinson need to make a PAT for the 4th qtr of >RM310 M. Is there a management guidance of the Q4 PAT figure?

Mabel

23,175 posts

Posted by Mabel > 2 months ago | Report Abuse

#stockraider After looking very carefully on Yinson weak cashflow, one can easily pick up very bad red flag as follows loh![

2. What is the strength of brazil Macro economy of Brazil leh ?

13/02/2024 12:03 PM

General Dear,

FPSO is a long term business.

One of MY Coach, Tony Robbins, the renowned motivational speaker, and life coach, has shared many inspiring quotes. One of his notable statements is “Don’t be a consumer; be a shareholder that produces.”

This powerful quote encourages us to shift our mindset from passive consumption to active participation. Instead of merely consuming, strive to take ownership, create value, and contribute. By adopting a “shareholder” mentality, we become active producers in our own lives, businesses, and relationships. Remember, it’s not just about what we consume; it’s about what we contribute and create.

Forecast: The World’s Largest Consumer Markets in 2030

Consumers are the lifeblood of the global economy, the driving force behind market dynamics, and the ultimate arbiters of demand.

But where are the biggest congregations of consumers, and are they growing?

Brazil is the sixth-most populated country, will have the fifth-largest consumers class by 2030, close to 136 million people.

Meow

FedEx

13 posts

Posted by FedEx > 2 months ago | Report Abuse

KUALA LUMPUR: Yinson Holdings Bhd's indirect wholly-owned Netherlands-based subsidiary Yinson Bergenia Production BV (YBPBV), has secured a US$720 million syndicated loan facility.

The lenders are ING Bank NV, Malayan Banking Bhd, Natixis Corporate & Investment Banking, Standard Chartered Bank (Singapore) Ltd and United Overseas Bank Ltd, who will act as the lead arrangers, underwriters and bookrunners.

The agreement was also signed by the Hongkong and Shanghai Banking Corporation Ltd and JP Morgan which are participating as mandated lead arrangers.

The six-year limited recourse loan will be used to support the ongoing construction of FPSO Maria Quitéria, a floating, production, storage and offloading (FPSO) project awarded to Yinson by Petróleo Brasileiro SA (Petrobras) in November 2021.

It is a limited recourse loan, i.e. the creditor seeks to wholly or primarily rely on the cash flows and assets of the project for repayment and security, rather than on Yinson.

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