Major US$5.2bn contract to underpin earnings
■ Reiterate Add, as Yinson has secured the FPSO PDB LOI from Petrobras, as widely anticipated. Project IRRs of 16-18% compare well to WACC of c.6%.
■ Our SOP-based TP is reduced slightly to RM9.06 on various housekeeping adjustments, rolling forward to end-CY22F.
■ Our FY23-24F core EPS forecasts are now raised 48-252% to reflect the construction profits for the project, based on finance lease accounting.