KUALA LUMPUR: Despite a weaker FY22 earnings result, Yinson Holdings Bhd's long-term prospects remain intact as it continues to seek growth opportunities in the FPSO and renewables segments, said Kenanga Research.

       While the group's FY22 core Patami of RM411mil was down 36%, Kenanga said it was within expectation while remaining optimistic over its growth outlook.

       The research firm said in a report that the group is looking to grow earnings via participation in FPSO bids in Angola, Suriname and Vietnam.

       Meanwhile, it remains at the forefront of energy transition with about 1.5GW of renewable energy projects current in the devleopment and consent stage as it targets to achieve carbon neutrality by 2030.

       However, Kenanga noted also that to funds its growth, the group is seeking to raise RM1.1-1.2bil via a rights issue, which is expected to be finalised in the coming weeks.

       "Post results, we made no changes to our FY23E earnings, while introducing new FY24E numbers.

       "Meanwhile, post model update, our SoP-TP is also lowered to RM5.40 (from RM7.35 previously).

       "We have also widened our share base dilution assumption from the rights issue to 30% (from 15% previously), considering the group’s intention of pricing the issue price at a 25-45% discount, as well the recent share price weakness," it said.

       Kenanga, which maintained its "outperform" call on the stock, said it remains positive on Yinson for its capable management team, long-term growth prospects and its ESG angle being well ahead of local and gas peers in terms of energy transition.