They are the floating production storage and offloading (FPSO) Anna Nery time charter in Brazil, the Agogo project in Angola and the Nokh solar power project in India.
Yinson had only recently won the Agogo project.
CGS-CIMB Sdn Bhd said the Anna Nery and Agogo projects should start booking in construction revenues and profits from Q2 2024.
At the same time, the Nokh solar project will be connected to the Indian national grid and begin generating revenue and profit as well.
CGS-CIMB said these projects are expected to lift Yinson’s earnings year-on-year and quarter-on-quarter for the financial year 2024 (FY24).
Based on those expectations, CGS-CIMB said in a note today that it was reiterating its “add” call for the company, and raising the target price (TP) to RM3.68, factoring in the Agogo contribution but partially offset by lower-than-expected end-FY22 cash balances.
Meanwhile, RHB Investment Bank Bhd said it continued to like Yinson for its exponential growth trajectory (41% three-year compound annual growth rate), backed by maiden contributions from three upcoming vessels, while continuing its aggressive ventures into green technology and renewables.
“FPSO Anna Nery has started receiving partial charter income since February under a provisional acceptance and expected to achieve final acceptance in April,” it said.
Yinson has secured an additional US$50,000 (RM220,898) per day charter rates uplift for this project to cater for higher capital expenditure and operating expenditure, while both FPSO Maria Quitéria and Atlanta are on track for conversion, being 46% and 32% completed, with both vessels having slated to achieve first oil by Q2-Q3 2024,” it noted.
“Hence, we have increased in FY24 to FY25 earnings by 4% to 7% to better reflect the FPSO contributions,” it said.
Kenanga Research believed that Yinson would focus on project execution and delivery, and the next new contract may only be secured in the later part of the year.
“We raise our FY24 net profit (forecast) by 19% but maintain our TP of RM3.65 and ‘outperform’ call,” it said.
The research house added that it preferred Yinson for its strong market position, with a fleet of nine FPSOs, making it the fourth largest FPSO player in the world and the largest in Malaysia, its strong management team, as well as its conscious decision to diversify into non-fossil energy sectors to future-proof its earnings sustainability.