CGS International Upgrades Yinson’s FY2026 Forecast On Strong EPCIC Profits

KUALA LUMPUR, Sept 29 (Bernama) -- CGS International Securities Malaysia Sdn Bhd has raised its financial year 2026 forecast (FY2026F) for Yinson Holdings Bhd, on account of the company’s stronger-than expected engineering, procurement, construction, installation, and commissioning (EPCIC) profits in the first half 2026 (1H 2026).

The forecast also factored in an earlier-than-expected start of Yinson’s floating, production, storage, and offloading (FPSO) Agogo’s charter.

In a note today, the global investment house said a very minimal EPCIC profits will likely be booked in 2H 2026F as the FPSO Agogo was 96 per cent completed as at July 31, 2025.

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“Yinson’s original guidance was for the FPSO Agogo to commence its long-term charter in the third quarter of FY2026F (Aug-Oct 2025F), and we had pencilled in the charter to start on Nov 1, 2025,” it said.

However, according to Yinson, the FPSO Agogo is essentially entitled to virtually the full bareboat charter rate from the Provisional Operational Readiness Certificate (PORC) date on Aug 12, 2025 and, hence, the charter is effectively starting 2.5 months earlier than expected.

“This leads to our upgrading the FY2026F core net profit by a net of 35 per cent after taking into account the developments in the second quarter of 2026,” CGS International said.

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As such, the investment house has reiterated its ‘add’ call on Yinson, with a higher target price of RM3.26 from RM2.43, as the company is likely to secure new projects.

“We believe there is a reasonable probability that Yinson will be privatised, based on a Bloomberg report on June 6, 2025, that New York-based Stonepeak Partners -- an infrastructure and real estate investment firm --is in exclusive talks with the Lim family for a buyout of Yinson,” it said.

-- BERNAMA