TA Securities Upgrades MISC to Buy, Backs RM3bn Investment in YINSON Privatisation Bid

StockTipRatings · November 10, 2026

TA Securities analyst Luqman Anwar upgraded MISC to “Buy” from “Hold”, retaining his RM9.03 target price, implying 12.7% upside. Following recent share-price weakness, the potential upside exceeded TA’s threshold for a “Buy” recommendation. He also views MISC’s proposed participation in Yinson Holdings’ privatisation as a strategic expansion of its offshore production business.

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Under the proposal, MISC would invest approximately RM3 billion for a 41.5% indirect effective interest in Yinson, with the privatisation priced at RM2.50 per share. Luqman believes the investment would broaden MISC’s international presence and strengthen its ability to pursue larger, more complex offshore projects. Yinson’s approximately US$19.3 billion offshore production backlog translates into around US$8 billion of proportionate exposure for MISC, supporting longer-term revenue visibility.

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However, the immediate earnings benefit would be modest. The illustrative analysis indicates approximately 1.9% earnings-per-share accretion, while funding 75% of the investment through borrowings would increase pro forma gearing from 0.36 times to 0.43 times. Luqman therefore views the deal primarily as a longer-term strategic investment. He left earnings forecasts unchanged pending shareholder and regulatory approvals, with completion targeted for the second half of 2027.

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In contrast, MBSB Investment Bank’s research team downgraded MISC to “Neutral” from “Buy”, cutting its target price to RM8.33 from RM9.22. It believes Yinson Holdings’ preference shares and perpetual securities currently absorb much of its equity profits, limiting returns available to ordinary shareholders.

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With MISC already undertaking substantial fleet investment, the additional RM3 billion commitment could increase borrowing and constrain dividend growth, despite the deal’s longer-term strategic merits.

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As of 9:40 a.m. on November 10, MISC’s share price rose 1.3% to RM8.11.

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Disclaimer: All content is AI-aggregated from public sources for informational and educational purposes only. StockTipRatings.com does not constitute investment advice. Past performance and historical statistics are no guarantee of future returns.

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