RHB Research Institute has maintained its “neutral” call on Yinson Holdings Bhd, despite the company’s core profit for the nine months ended October 31 2014 surpassing expectations.
Yesterday, the integrated offshore services provider reported core profits of RM108 million, mainly driven by the margin expansion from fuller floating, production, storage and offloading contributions and cost savings from favourable exchange rates which offset decreasing revenue from its traditional businesses.
RHB Research kept its “neutral” call on the stock with a target price of RM2.60, a 7.5 per cent downside, as the firm believes Yinson’s valuations remain lofty.
“Our earnings forecast are still under review, pending the guidance management briefing,” the research house said in a report on Tuesday.
Yinson’s share price fell two sen to RM2.73 with 1.45 million units changing hands. Bernama