Kuala lumpur: Yinson Holdings Bhd shares were up in early trading despite the company's net profit declining to RM683 million for the financial year ended January 31, 2026 (FY2026) from RM1.24 billion a year ago. At 10:44 am, Yinson stock rose four sen to RM2.33 with 2.26 million shares traded.

According to BERNAMA News Agency, Kenanga Investment Bank Bhd stated in a research note that Yinson's FY2026 results came slightly above expectations due to lower-than-expected green energy losses. The bank noted that adjustments to bookkeeping resulted in a slight trim of FY2027 forecast earnings, which in turn led to a revised target price (TP) of RM2.76. Kenanga Investment Bank maintained an 'Outperform' call on the stock, emphasizing Yinson's reasonable FY2027 forecast price-to-earnings ratio of 10.3 times and its potential to monetize its FPSO assets in the near to medium term.

Meanwhile, RHB Investment Bank Bhd highlighted Yinson's medium-term outlook, which is supported by a growing base of recurring FPSO charter income and a robust US$19.5 billion backlog, ensuring long-term earnings visibility. Although earnings may experience volatility due to foreign exchange and mark-to-market movements, RHB Investment Bank anticipates strengthening underlying profitability with full-year contributions from FY2027 onward. The bank has a 'Buy' call on the stock with a TP of RM3.83 per share.

In a Bursa Malaysia filing last Thursday, Yinson attributed the decrease in FY2026 net profit to a lower contribution from its engineering, procurement, construction, installation, and commissioning (EPCIC) activities, alongside higher administrative expenses during its transition from a capital expenditure-intensive EPCIC phase to an operational phase. Impairment losses within its renewables and green technologies segments further impacted profits. Additionally, the company recorded a one-off gain in the fourth quarter of FY2025. Revenue for FY2026 fell to RM5.44 billion from RM7.60 billion in FY2025.