Yongnam

Yongnam

Postby winston » Fri May 16, 2008 3:28 pm

From CIMB:-

Within.
1Q08 net profit of S$6.0m (+268% yoy) was within market expectations but 12% below our forecast, forming 20% and 17% of the respective annualised estimates. The variance came from differences in gross margins and operating expenses. Revenue of S$47.4m (+56% yoy) was driven by structural steelworks, where sales grew 157% yoy to S$44.4m.

Operational review.
Singapore and Middle East were the growth markets with increased infrastructure and construction activities. Key driver was structural steelworks which benefited from projects such as Orchard Turn, the Marina Bay Sands Integrated Resort, Formula One and Dubai Metro Rail. Specialist civil engineering revenue fell 77.2% yoy to S$3.1m in 1Q08, as much of the Circle Line
project had been completed.

Gross margins rose to 26.9% from 20% in 1Q07, while pretax margins rose to 12.6% from 5.3%, mainly due to better-margin contracts. Net profit of S$6.0m was achieved despite higher SGA expenses (+77.6% yoy), attributable to increased business activities and the fair value of share options granted, expensed over the vesting period. Gearing increased to 0.75x as at end- 1Q08 from 0.65x as at end-4Q07 on the back of increased business.

Positive outlook.
The next few years will see a slew of planned mega-projects by the Singapore government, which include the Sports Hub, Marina Coastal Expressway and Downtown Line. In the Middle East, management expects to capitalise on an upsurge of infrastructural developments. Construction of two steel fabrication facilities strategically located in Malaysia and in Saudi Arabia is expected to support the group’s growth. The facility in Malaysia could be ready for operations by end-Jun 08 and the facility in Saudi Arabia, by Nov 08.

Maintain Outperform. We have reduced our forecasts for FY08-09 by 13-15% but raised FY10 forecast by 15.3% to reflect improved gross margins but higher SGA expenses, as well as pushing back some projects that have not yet been awarded.
On an unchanged basis of 12x CY09 P/E, we derive a lower target price of S$0.35 (from S$0.42).
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Re: Yongnam

Postby kennynah » Sun May 18, 2008 11:37 pm

<<Positive outlook.
The next few years will see a slew of planned mega-projects by the Singapore government, which include the Sports Hub, Marina Coastal Expressway and Downtown Line>>


i wonder if the price correlates fast enough with such news...or have to wait every qtr for prices to show up? i wonder...
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Re: Yongnam

Postby millionairemind » Tue Dec 02, 2008 7:30 pm

Singapore
December 2, 2008, 5.44 pm (Singapore time)

Yongnam bags S$88 mln contract
By UMA SHANKARI

Yongnam Holdings on Tuesday said that it has won a S$88 million contract for the construction of the Integrated Civic, Cultural, Retail and Entertainment Hub at Vista Xchange at one-north.

The a 200-hectare project at Buona Vista is being jointly developed by CapitaLand and New Creation Church's Rock Productions. The entire hub is expected to cost some $976.3 million.

Yongnam will be involved in the construction of the integrated hub and will supply, fabricate, deliver and erect structural steelworks for the building structure. The project will commence at end of this year and is expected to be completed by January 2011, Yongnam said.

The contract is not expected to have any material impact on the group's financial performance for the financial year ending December 31, 2008, Yongnam said.

Currently, Yongnam is also engaged in several other local and regional mega projects, including the Marina Bay Sands Integrated Resort, the Dubai Metro and the Delhi International Airport. Adding on Yongnam's recent contract win from the Marina Bay Sands Integrated Resort, Yongnam has increased its current order book by S$111.8 million, it said.

Yongnam shares gained 0.5 cent to close at 7.5 cents today
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Re: Yongnam

Postby winston » Tue Dec 23, 2008 9:24 pm

Yongnam eyes over $300m in new deals

SINGAPORE - Singapore-based construction firm Yongnam Holdings said on Tuesday it is eyeing new projects in the Middle East and is in talks with the Abu Dhabi government for infrastructure deals.

The firm is looking at around $1 billion (US$693 million) worth of potential new deals in Singapore, Dubai, India and the Middle East which it hopes will result in new contracts to add to its existing orderbook of $247 million at end-September, said Yongnam's Finance Director Chia Sin Cheng.

'We have potential projects and typically for potential projects, we target around 30 to 50 per cent success rate for first half of next year,' the director told Reuters in an interview.

This meant the firm is hopeful of getting at least $300 million in new projects.

Yongnam, which specialises in steel structures for buildings and infrastructure projects such as metro systems, recently won contracts to build an entertainment centre and parts of the upcoming Marina Bay Sands integrated resort in Singapore. -- REUTERS
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Re: Yongnam

Postby millionairemind » Fri Jan 16, 2009 9:35 pm

January 16, 2009, 5.42 pm (Singapore time)

Yong Nam clinches $185.5 mln steel supply contract

By ARTHUR SIM

Yongnam Holdings has been awarded its single largest contract to date, valued at $185.5 million, for the 5-km Marina Coastal Expressway.

Yongnam will provide temporary steel pipe pile cofferdam, steel waling and strutting works, construction decking and other associated works, to be constructed in two stages.

The contract is targeted for completion by June 2013 and is expected to have a material impact on the group's financial performance for the financial year ending December 31, 2009.

Adding on this latest contract to the new contracts announced in November and December 2008, Yongnam's current order book has increased by $297.3 million.
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Re: Yongnam

Postby winston » Tue Mar 03, 2009 9:04 am

YONGNAM HOLDINGS - Construction firm Yongnam Holdings said it has been awarded a second contract, worth approximately S$53 million, for Singapore's Marina Coastal Express Way.
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Re: Yongnam

Postby millionairemind » Wed Aug 12, 2009 8:09 pm



Yongnam's Q2 net profit rises 22% to S$10.6m

By Yasmine Yahya, Channel NewsAsia | Posted: 12 August 2009 1918 hrs

SINGAPORE : Steel contractor and civil engineering firm Yongnam on Wednesday said its second-quarter net profit jumped 22 per cent to S$10.6 million.

Revenue for the three months to June rose 0.1 per cent to S$86.4 million.

Yongnam's structural steelworks business accounted for over 80 per cent of its total revenue for the second quarter.

This was mainly due to contributions from the completion of the New Delhi International Airport and heightened activities at the Marina Bay Sands Integrated Resort and Vista Xchange at one-north.

But its Specialist Civil Engineering business registered a 36 per cent decline in revenue, due to reduced engineering activities at the Marina Bay Sands IR.

Looking ahead, Yongnam said it will continue to focus on strategic expansion in its three key markets of Singapore, India and the Middle East.

With its strong track record, the firm said it believes it will be able to capitalise on several upcoming business opportunities in these markets over the next few years. - CNA/ms
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Re: Yongnam

Postby millionairemind » Mon Mar 01, 2010 10:05 am

Singapore Companies
Published March 1, 2010

Yongnam posts full-yr profit of $48.8m
It is up 18% y-o-y; this is 4th record earnings since 2006


By CHEW XIANG

STEEL contractor Yongnam Holdings on Saturday announced full-year net profit of just over $40 million, up 18 per cent year-on-year.

Revenue increased 2.7 per cent to $346.8 million. Yongnam said its pre-tax profit of $48.8 million was its fourth record earnings since 2006. Reduced contributions from overseas projects in New Delhi and Dubai had been offset by more projects in Singapore such as the Marina Bay Sands and the start of Vista Xchange at One-North.

Singapore sales rose 67 per cent to $260.3 million, from $155.7 million in 2008, but revenue from the Middle East halved to $63.6 million due to the substantial completion of its Dubai metro rail project.

For the year, fully diluted earnings per share was 3.19 cents, up from 2.77 cents. 'The group continues to benefit from the increased spending on mega infrastructural projects in the region,' said Seow Soon Yong, chief executive officer.

The company said potential contracts from Singapore includes the Singapore Sports Hub and the MRT Downtown Line Phase 2, which are expected to be up for tender in 2010.

'In addition, the group continues to actively pursue projects in Hong Kong, Abu Dhabi, Saudi Arabia and India,' Yongnam added.

The company secured $340 million of new orders in 2009 and has an outstanding order book of $492 million, with 62 per cent of that expected to be completed this year. Yongnam in December won a $21.5 million contract to build part of Singapore's new expressway.

Yongnam said it was paying a final dividend of 0.5 cent per share, up from 0.4 cent for 2008. The stock closed on Friday at 25.5 cents, up half a cent.
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Re: Yongnam

Postby millionairemind » Thu Apr 01, 2010 9:09 am

Published April 1, 2010

Yongnam upbeat on winning a third of new projects here

It plans to boost stock of steel struts as builders' demand remains strong


By VEN SREENIVASAN

COMING into the new year with an order book of some $492 million, specialist infrastructure steelworks company Yongnam Holdings reckons it can clinch at least a third of the estimated $1.4 billion worth of new projects coming onstream this year.

And this does not include up to $30 billion of infrastructure projects here, including the $8 billion North-South underground expressway, which is expected to be commissioned in the next few years.

'Some people (in the market) seem to think that with the completion of some of our big commercial projects like Marina Sands, the game is over for us,' laughed executive director and chief financial officer Chia Sin Cheng.

'They could not be further from the truth. Even as I speak, we are very busy with major infrastructure projects such as the $5 billion Marina Central Expressway, Downtown Line 2 & 3, Gardens by the Bay and others.'

Yongnam considers itself unique in its business.

The company is Singapore's, and probably the region's, largest supplier of steel struts used to support construction of tunnels, underground highways and subterranean buildings; and structural steel used for the construction of mega complexes and buildings. Indeed, some analysts calculate that Yongnam is bigger than the combined size of its next two biggest competitors, Taiwan's Fuichi and Japan's J-Steel.

'In this business, size matters,' Mr Chia said. 'Barriers to entry are high, not just because of cost, but also because of regulatory requirements and the need for a strong track record. And we have first mover advantage on these fronts.'

Yongnam's size becomes obvious when seen in the context of its steel asset holdings: it owns some 135,000 tonnes of steel struts at its Tuas facility, which itself is the size of 20 football fields.

These re-usable struts are used by multinational builders like Obayashi, Takenaka, Penta-Ocean and others to physically support underground tunnels and caverns at multi-billion-dollar subterranean infrastructure projects.

Demand has been so strong that Yongnam is planning to buy at least 20,000 tonnes more, to boost its total stock to 155,000 tonnes. Its existing stock is carried at original steel cost of $900 per tonne, though new stock will have to be bought at $1,600 per tonne - a factor which also raises barriers to entry.

'No doubt, there has been a slight flattening out of these commercial projects which use structural steel,' Mr Chia said. 'But the pipeline looks promising, especially with the Kallang Sports Hub and Southbeach projects coming onstream later this year.'

Last year, structural steel accounted for 75 per cent of its full year revenue of $347 million (net profit for end-December 2009 was $40.1 million). But in its current order book, 60 per cent of revenue will come from struts.

The company is also looking to diversify geographically.

'Currently, 90 per cent of our projects are in Singapore,' he said. 'We expect the Singapore:offhsore mix to be 50:50 in about three to five years.' Its past offshore projects include Delhi Airport, Bangkok Airport and Dubai Metro Rail.

Meanwhile, the company is bracing for a slew of mega infrastructure projects here, including the underground expressway which will run parallel to the CTE.

'In this business, you must have the capacity and size to deliver,' he said. 'So for us, the bigger the project, the better.'

Meanwhile, it expects to book some 62 per cent of its existing order book into this year's earnings, with the rest coming in during 2011.

Asked why Yongnam's stock is stuck at under 30 cents if the outlook was so bright, Mr Chia laughed: 'Yes, we used to be above 50 cents over a year ago when we had half the value of projects in hand. I suppose the market has not appreciated what we are. Many analysts tend to lump us with other general contractors, not realising that we are a specialist steelworks subcontractor who does not share the same risks as those in general construction.'
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Re: Yongnam

Postby winston » Wed Sep 29, 2010 8:35 am

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YONGNAM HOLDINGS - Singapore construction firm Yongnam Holdings said on Tuesday it has won a second contract worth S$27.5 million ($20.86 million) for the MRT Downtown Line 2, one of the city-state's major rail projects.


Source: Reuters
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