Broker: UOB Kay Hian Securities (M) Sdn. Bhd.
Date of Report: Tuesday, 8 July 2025

Yinson Holdings Shines with FPSO Milestones as Bina Puri and Ewi Capital Signal Technical Buy: Malaysia Market Update

Key Market Highlights and Indices Performance

The Malaysian equity market experienced a downturn, with the FBMKLCI closing at 1,537.54, down by 12.7 points (-0.8%). Other major indices also registered losses: Bursa Emas fell by 0.9%, Industrial Products dipped 1.1%, Finance lost 0.4%, Consumer eased 0.2%, and Construction was the largest laggard at -2.0%. The Properties and Plantations indices dropped 1.0% and 0.1% respectively.

Market turnover on 7 July 2025 stood at 3.57 billion units (+4.2%) valued at RM2.50 billion (+1.1%). Foreign investors increased their participation to 34.1% (+6.5ppt), while local institutions trimmed their activity to 49.5% (-6.2ppt) and retail investors held 16.4% (-0.3ppt).

Top Trading Stocks, Gainers, and Losers

• Top Turnover: Tenaga Nasional (RM13.80, -1.8%), Gamuda (RM4.96, -2.7%), Malayan Banking (RM9.72, -0.2%), CIMB Group (RM6.75, -0.3%), Public Bank (RM4.33, -1.1%).
• Top Gainers: 99 Speed Mart Retail (RM2.25, +2.3%), Carlsberg Brewery (RM19.20, +1.5%), Top Glove Corp (RM0.69, +1.5%), Eco World Development (RM2.08, +1.5%), WCE Holdings (RM0.70, +1.4%).
• Top Losers: Nationgate Holdings (RM1.63, -8.4%), YTL Power International (RM3.91, -5.1%), UWC (RM2.05, -4.7%), Zetrix AI (RM0.95, -4.5%), Unisem M (RM2.30, -4.2%).

The Malaysian Ringgit traded at RM4.24 against the US dollar (+0.3%), while CPO 3rd month futures closed at RM4,071/mt (+0.2%).

Yinson Holdings: Robust FPSO Catalysts and Strong Financial Outlook

Company Overview and Market Position

Yinson Holdings Berhad stands as one of the world’s largest Floating Production, Storage and Offloading (FPSO) operators, with comprehensive Engineering, Procurement, Construction, Installation and Commissioning (EPCIC) capabilities. The company also holds an associate stake in Offshore Support Vessels (OSV). Yinson reports both under International Financial Accounting Standards (IFRS) and an Enterprise Reporting (ER) method, the latter offering a closer reflection of its cash flow generation.

1QFY26 Results Addendum: Key Financial Insights

• Strong Early Delivery from FPSO Agogo: Yinson realized substantial financial benefits from early delivery progress milestones, with 1QFY26 ER revenue including a one-off US\$57m milestone from FPSO Agogo. Equivalent figures for FY25/FY24 were US\$66m/US\$281m, indicating a consistent track record of early delivery.
• FPSO Abigail Joseph (AJ) Contract Extension: The firm contract expiry has been extended from 2027 to 2034, boosting the firm orderbook from US\$0.2b to US\$0.7b. This reflects successful debottlenecking and modification projects, with production capacity targeted to reach 70,000 bpd soon and plans to scale up to 100,000 bpd.
• Improved Debt Amortisation: Yinson’s updated debt schedule, factoring in recent FPSO MQ refinancing, shows no major repayments until FY29 (>US\$0.5b), alleviating investor concerns regarding debt servicing.

Detailed Financial Performance

Quarterly Performance Highlights

• 1QFY26 ER EBITDA: US\$173m (+71% yoy).
• 1QFY26 recalculated core profit: RM159m (on track for full-year forecast).
• US\$65m revenue upside from FPSO MQ and FPSO Atlanta, with both contributing fully since their first oil dates in late 2024.

Risk and Valuation Outlook

• Earnings forecasts are retained, with upside risks from earlier-than-expected FPSO Agogo contribution, the scale of FPSO AJ’s upgrade, and potential FPSO Helang extension beyond 2027.
• Target Price: RM3.15 (14x FY26F PE or 10x long-term PE), with potential to rise to RM3.45 if FPSO AJ and Helang contract extensions are fully reflected.

Technical Trader’s Corner: Bina Puri Holdings and Ewi Capital

Bina Puri Holdings (BIN MK): Technical Buy on Breakout

• Last Price: RM0.305
• Target Price: RM0.37, RM0.395
• Support: RM0.255
• Stop-loss: RM0.245
• Potential Upside: +25.4% on breakout above RM0.315

Bina Puri’s share price has rebounded above the BBI line, signaling the end of its recent correction. Strengthening momentum is evident in the RSI, DMI, and MACD indicators, supporting a bullish outlook. The uptrend is expected to be sustainable, targeting RM0.37 and RM0.395 in the near term. The recommended time frame is two weeks to two months.

Ewi Capital (EWICAP MK): Technical Buy on Momentum

• Last Price: RM0.37
• Target Price: RM0.445, RM0.495
• Support: RM0.31
• Stop-loss: RM0.305
• Potential Upside: +30.3% if breakout above RM0.38 is achieved

Ewi Capital’s uptrend remains intact, provided it can break above the key RM0.38 resistance level. RSI and DMI are positive, and the MACD is on the verge of a bullish golden cross. Upside targets are set at RM0.44 and RM0.495 over the next two weeks to two months.

Comprehensive Financials for Yinson Holdings

Conclusion: Yinson Leads with Execution, Technical Buys in Focus

Yinson Holdings continues to outperform with timely FPSO project executions, improved cash flow visibility, and prudent capital management. The company’s share price benefits from robust contract extensions and early delivery milestones, with significant upside potential upon further contract extensions. In the traders’ space, Bina Puri Holdings and Ewi Capital both exhibit bullish technical setups, offering tactical opportunities for short- to medium-term investors. The Malaysian market remains dynamic, with sector-specific winners despite headline index weakness.