Monday, April 9, 2012

Yinson Holdings: Maintain Buy - Balancing Growth

Preparing for new projects. Yinson is proposing a 6% placement of new shares. We believe this is to fund upcoming projects planned for the next 12 months though management remains mindful to limit dilution to shareholders. No change to target price pending completion of the exercise but we are positive as it will lower Yinson's gearing (1.8x to 1.6x) putting it on a better footing to secure new jobs.

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Source: Maybank Research - 9 April 2012

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