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Yinson Holdings – Secures Petrobras’ FPSO PDB job (YNS MK, MYR5.75, BUY, TP MYR11.55, Oil & Gas)

We are positive on this latest Petrobras job win. Yinson’s latest PDB deal is a much-improved version of its previous ones (1st in 2H19 & 2nd in 1H21; on DCRs, terms). It is also comparatively better than Marlim 2 (similar in capex/size), which has led us to raise our SOP-based TP by 6%. Our new TP incorporates the PDB impact (15% P-IRR, 9.5% WACC, 22.5 year charter, residual value) & the higher MYR1.2b rights issue effect.