STOCK FOCUS OF THE DAY
Yinson Holdings: On a tailwind of FPSO demand revival BUY
We maintain BUY on Yinson Holdings (Yinson) with unchanged forecasts and sum-of-parts-based (SOP) fair value of RM4.72/share, which implies an FY19F PE of 15x.
Following an analyst briefing last Friday, we remain convicted of Yinson’s strong order book prospects and its capability of safely navigating the recent force majeure event for the Ca Rong Do (CRD) project in Vietnam against the backdrop of a territorial dispute with China.
The group is confident of fully recovering all costs incurred for the project even though the legal ownership for the CRD floating production, offloading and storage (FPSO) vessel is uncertain pending negotiations with financial institutions and the operator Repsol. In the worst case, there will be no costs for the group. A possibility is that Yinson could end up with a 49% equity stake in the FPSO which has been fully paid by Repsol and that can be redeployed for other projects at much lower costs and more lucrative returns.
Others :
Enra Group: Serving payment claim of RM10.2mil against client HOLD
QUICK TAKES
Felda Global: Initiates legal proceedings against Safitex HOLD
Plantation Sector: News flow for week 26 – 30 March NEUTRAL
RETAIL RESEARCH
Stocks On Radar: Hartalega, Gabungan AQRS, Green Packet, Ta Ann Holdings
ECONOMIC HIGHLIGHT
Malaysia: Expect PPI to be in negative growth trajectory
NEWS HIGHLIGHTS
Construction Sector: MBAM sees RM180bil worth of construction jobs this year
LSK: Eyes another 30%-40% earnings growth in FY18
Tek Seng: Plans RM20mil investment to produce plastic films
Poly Glass Fibre: Looks overseas to offset weak local demand
DISCLAIMER:
The information and opinions in this report were prepared by AmInvestment Bank Bhd. The investments discussed or recommended in this report may not be suitable for all investors. This report has been prepared for information purposes only and is not an offer to sell or a solicitation to buy any securities. The directors and employees of AmInvestment Bank Bhd. Bhd may from time to time have a position in or with the securities mentioned herein. Members of the AmBank Group Bhd and their affiliates may provide services to any company and affiliates of such companies whose securities are mentioned herein. The information herein was obtained or derived from sources that we believe are reliable, but while all reasonable care has been taken to ensure that stated facts are accurate and opinions fair and reasonable, we do not represent that it is accurate or complete and it should not be relied upon as such. No liability can be accepted for any loss that may arise from the use of this report. All opinions and estimates included in this report constitute our judgment as of this date and are subject to change without notice.
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