KUALA LUMPUR, March 24 (Bernama) -- Yinson Holdings Bhd shares were up in early trading despite the company's net profit declining to RM683 million for the financial year ended Jan 31, 2026 (FY2026) from RM1.24 billion a year ago.
At 10.44 am, Yinson stock rose four sen to RM2.33 with 2.26 million shares traded.
In a research note today, Kenanga Investment Bank Bhd said Yinson’s FY2026 results came slightly above expectations due to lower-than-expected green energy losses.
“We trimmed FY2027 forecast earnings slightly after bookkeeping adjustments for the full year. As a result, our target price (TP) was also trimmed to RM2.76. We maintain an “Outperform” call on the stock,” it said.
Kenanga Investment Bank said the company is trading at a reasonable FY2027 forecast price-to-earnings ratio of 10.3 times, given its potential to monetise its FPSO assets in the near to medium term.
Meanwhile, RHB Investment Bank Bhd said Yinson’s medium-term outlook is underpinned by a growing base of recurring FPSO charter income and a strong US$19.5 billion backlog, which provides long-term earnings visibility.
“While reported earnings may remain volatile due to foreign exchange and mark-to-market movements, underlying profitability is expected to strengthen further with full-year contributions from FY2027 onward.
RHB Investment Bank has a “Buy” call with a TP of RM3.83 per share.
In a Bursa Malaysia filing last Thursday, the logistics company said the decrease in Yinson’s FY2026 net profit was mainly due to lower contribution from engineering, procurement, construction, installation, and commissioning (EPCIC) activities, and higher administrative expenses following its transition from a capital expenditure-intensive EPCIC phase to an operational phase.
Impairment losses for its renewables and green technologies segments also affected profit. The company also said a one-off gain was recorded in the fourth quarter of FY2025.
Revenue fell to RM5.44 billion in FY2026 from RM7.60 billion in FY2025.
-- BERNAMA
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