【Yongnam Y02 交流专区】荣南控股 YONGNAM HOLDINGS LIMITED

臥龍先生

原帖由 她的男人 于 23-4-2008 04:56 PM 发表
yongnam不错的，不过我还在观望。

股票的數量太多了....

她的男人

如果能多拿到几个IR project, 前景应该不错。
不过我现在没有资金。都用来买 Celestial 了。

她的男人

读到一篇yongnam的文章，更大家分享一下。
http://bullythebear.blogspot.com/2008/02/yongnam.html



From the press release, it seemsthat Yongnam had a good result. A closer look should be able to see ifthis is really true.
----------------------------------------------2006------------------2007--------
Cost of goods (% to revenue)------------85.0%-----------------82.3%-------
Gross margin------------------------------15.0%-----------------17.7%--------
Net margins (include one off gains)---------3.5%------------------14.2%--------
Net margins (exclude one off gains)---------3.5%------------------6.9%---------

EPS (cents, fully diluted)-------------------0.65--------------------2.03---------
ROE---------------------------------------72.3%-----------------22.8%---------

Firstthing I noticed is that the gross margin is rather low. I guess that’sthe kind of margin one will get from a construction firm. I need to doa comparative study between players in the industry to get a clearerview of this. Yongnam had a write-back of impairment in respet of aninvestment property, resulting in a one-of gain of $12,774,000.Discounting that, net margins improved from 3.5% in FY06 to 6.9% inFY07.

Second thing I noticed is that the ROE varies wildly fromyear to year. Some years is NA (as there are negative earnings), someyears have 400% over. Inherently unstable business, due to the cyclicalnature of the industry, I suppose.

Another surprise for me…Ididn’t know that Yongnam is still having accumulated losses. Losses hadbeen reduced from $26.7 mil to $1.89 mil in FY07. This reminds me ofAztech since they also had been reducing their accumulated losses overthe years. Something bad must have happened in the past to make Yongnamlike that. If I’ve known earlier, this would be a minus point for me.

Fromthe balance sheet, I noticed that yongnam’s short term borrowings haddropped from 35 mil to 15.7 mil in FY07, while long term loansincreased from 43.9 mil to 75 mil in FY07. According to the management,this is due to them securing a syndicated loan which was used torefinance existing borrowings, as well as to further working capital.

Yongnam listed a few points could grow their revenue and margins in the future:

1.A $14 billion plan in Singapore to improve the country’s roadinfrastructure in the coming years, including the construction of themarina coastal expressway, Thomson MRT and the Eastern Region MRT line.These major infrastructure works will surely need steel structures. Allthe underground structures will need such steel struts that Yongnamprovides, if I still remember my engineering foundation.

2.Looking for growth opportunities in Middle east, especially Dubai sinceYongnam has established a strong foothold in there with the Dubai MetroRail project. Looking for more growth opportunities in India too.

3.Yongnam’s order book as at 31 Dec 2007 amounted to $162 millioncompared to $147 million as at 31 Dec 2006. Without counting thewriteback impairment of 12.8 million, Yongnam’s FY07 net profit is$12.0 million. Assuming a net margin in FY08 of 6% (compared to 6.9%margins in FY07), this $162 million order will translate into a netearnings of $9.72 million. An excess of another 2.28 million (12 - 9.72= 2.28), or an equivalent total contract size of $38 million will makethe net earings equal to FY07 (without the write back of 12.8 million)

Ifwe are to include the write back, net earnings for FY07 is $24.8million. Again, based on a net margin of 6%, Yongnam need to cover up ashortfall of $15.1 million in net earnings or an equivalent contractsize of $251 million in order to rival FY07 net earnings.

4.Their steel fabrication plant in M’sia is scheduled to commenceoperation by the first half of FY2008. By then, I should expect theirmargins to improve. A more comforting thought will be that their steelstrutting business will grow even more, which is exactly what themanagement had planned. It’s good that Yongnam identified theirstrengths and work on leveraging it to exert a competitive advantage inthis cutthroat business. Setting a steel fabrication plant should lowerdown the cost (I hope!).

There are still some contracts for theIR which is not awarded yet. What is the contract amount that is stillup for grabs? If we know the amount, we can roughly see if Yongnam netearnings will be more or less than FY07 based on IR contracts alone.It’ll be excellent if Yongnam can derive more earnings from overseasthen from Singapore. Let’s take a look at their segmented results:

For FY06
---------------------------------Singapore---------Dubai-----------M’sia-----------
Revenue (% to total)----------83.5%------------2.9%------------11.3%----------
Margin --------------------------9.5%-------------26.7%----------NA(neg earnings)-

For FY07
Revenue (% to total)-------------62.3%------------37.6%------------0%------------
Margin ----------------------------61.7%-----------18.6%------------0%-------------

Ascan be seen, there is a huge range of margins derived from the sameplace at different periods. Construction is really a hard business toplace a value on, since their business variables are volatile andnumerous. Thus order book really doesn’t mean anything as the marginscan change drastically, depending on the conditions of the actual siteto work on. There doesn’t seem to be a consistent pattern to base therevenue and the margins from, and hence I shall refrain from doing sotoo. If I ever do a valuation ofconstruction firm, I must bear this in mind – the inherent instabilityof the industry will require a huge margin of safety and an equallyconservative estimate of all the business variables.

Horrorof horrors. I did a conservative estimate of Yongnam based on its nettangible assets (net assets – inventories – intangibles), and foundthat its NTA is only 8.09 cts. Okay, maybe steel materials can stillsell for some value. Let’s give Yongnam a break and value the steelmaterials that it’s holding at book value, so its NAV will be 8.93 cts.If I assume that Yongam’s forward looking earnings in FY08 is the sameas the FY07 (I take it as $24.8 million, including the writeback),applying a net margin of 7% will give me a forward EPS of 0.143 cts.

Adding together gives me a value of 9.1 cts of $0.090. Even if I double FY08 earnings, my value will be slightly north of $0.092. How about 10 times earningsfor FY08 from FY07? I get around $0.104 – still a far cry from thepresent price of $0.245. How the hell did Yongnam go up to 50 cts inthe past? My goodness…and I bought at 34.5 cts and 43.5 ctspre-warrants issue. Atlas, the dangers of not knowing the value of whatyou’re buying.

臥龍先生

Yongnam Holdings – Said it will form a joint venture (JV) with Singapore's KTC Civil Engineering & Construction Pte Ltd to undertake an $81.4m contract for temporary decking, steel waling, strutting and excavation works at the South Podium of the Marina Bay Sands Integrated Resort. The JV will be 70%-owned by Yongnam. Yongnam, together with partners, has so far won contracts worth more than $170m for the IR development.

臥龍先生

Yongnam Holdings (S$0.24) - 1QFY08 results - Expected boost in FY09
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).

臥龍先生

SUMMARY

Jan-09, Co awarded $185.5m contract to provide steel and support toPenta-Ocean Construction for the construction of Marina CoastalExpressway, targeted for completion in 2013. This is expected to have amaterial impact on Co's FY09 performance.

Dec-08, Co won $88m contractto construct the Integrated Civic, Cultural, Retail & EntertainmentHub at Vista Xchange at one-north.

Nov-08, Co won $23.8m contract toconstruct the Corridor Bridges and Canopies at the North View, SouthView, Bay Front, the Ice Rink & the Arch Beam Structure at the EastEnd of the North View Corridor of the Marina Bay Sands IR.

All 6 pjtsthat the Co had secured for the Marina Bay Sands IR have commencedconstruction & are progressing smoothly, with 1 contract alreadycompleted.3Q08 earnings higher due to revenue from both structuralsteelworks & specialist engrg which doubled. Expects to maintain astrong order book going into FY09.

[ 本帖最后由 臥龍先生 于 10-2-2009 09:08 AM 编辑 ]

热血

卧龙先生，
YONGNAM这间公司正在成长，天天都有新的PROJECT。
但是在现金周转发面，你觉得的有问题吗？
以现在公司的现金周转来看，还想不是很好噢
CONSTRUCTION是怎样CLAIM钱的呢？
位于NUSA JAYA的产房能为它带来怎样的利益呢？
目前新厂的产量会比旧厂多出多少呢？

臥龍先生

AWARD OF C485 CONTRACT FOR THE MARINA COASTAL EXPRESSWAY

The Directors of Yongnam Holdings Limited (“Yongnam” or the “Group”), a well-established structural steel contractor and specialist engineering solutions provider, are pleased to announce that it has been awarded its single largest contract todate, valued at S$185.5 million (the “Contract”), for Singapore’s highly anticipated new expressway, the Marina Coastal Expressway (“MCE”). Commented Mr Seow Soon Yong, Chief Executive Officer of Yongnam: “The new contract for another prestigious infrastructural development in Singapore further affirms the Group’s established track record and strong technical expertise in quality structural steelworks and specialist civil engineering services. This builds on our participation in several notable infrastructural development projects over the past few years, such as the Central Expressway, MRT North East Line, MRT Circle Line, the Kallang/Paya Lebar Expressway, the Marina Bay Sands™ Integrated Resort, Ion Orchard, the Dubai Metro and Delhi International Airport. “Recent reports have revealed that the construction sector has continued to grow in the fourth quarter of 2008, albeit at a slower pace from the previous quarter. In addition, the financial community has expressed general positive sentiment that the construction activity is expected to expand relatively strongly in 2009, although at just around half the pace in 2008. Moving ahead, we will still proceed cautiously, taking into consideration the fact that the deepening global financial crisis may affect future demand.”

The dual five-lane, 5km long MCE is a strategic underground east-west transport link between three major expressways, catering to the projected increase in traffic volume generated by the high-density developments in the Marina Bay area. The MCE will be a challenging construction feat, as part of the expressway will run underneath the seabed, just 150 metres away from the Marina Barrage, which needs to be opened periodically to allow water to flow out during heavy rain. Yongnam will support the main contractor, Penta-Ocean Construction Co., Ltd., through the provision of 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. The Contract is expected to have a material impact on the Group’s financial performance for the financial year ending December 31, 2009. Currently, Yongnam is also engaged in several other local and regional mega projects, including the MRT Circle Line, the Marina Bay Sands™ Integrated Resort, the Dubai Metro and the Delhi International Airport. Adding on the Contract to the new contracts announced in November and December 2008, Yongnam’s current order book has increased by S$297.3 million.

臥龍先生

Review of Performance 3Q FY2008The Group continued to perform well notwithstanding the globaleconomic slowdown. As a leader in structural steelworks and specialistcivil engineering, Group revenue more than doubled, registering asignificant 109.1% improvement to $96.3 million in the third quarterended 30 September 2008 ("3Q FY2008"), compared to $46.0 million in thecorresponding third quarter ended 30 September 2007 ("3Q FY2007").

Revenue from both Structural Steelworks and Specialist CivilEngineering doubled, recording strong contributions in3QFY2008.Structural Steelworks increased 107.8% in revenue to $67.4million (3Q FY2007: $32.5 million). This was mainly attributable to thecommencement of projects such as the New Delhi International AirportProject and Marina Bay SandsTM Integrated Resort, and increased activities from the Dubai Metro Rail.

Revenue from Specialist Civil Engineering grew by 123.1% to $28.8million in 3Q FY2008, compared to $12.9 million in 3Q FY2007. This wasmainly due to the commencement of projects at Marina Bay SandsTM Integrated Resorts.

Accordingly, gross profit jumped 172.9% from $6.4 million in 3QFY2007 to $17.5 million in 3Q FY2008, attributable to both higherrevenue and improved margins. Profit after tax improved almostfour-fold, from $2.2 million to $8.2 million.

In view of the increased business activities, general andadministrative expenses increased by $4.5 million in 3QFY2007 to $8.0million. This is mainly due to increased staff costs and share-basedcompensation in 3QFY2008 and the write-back of $1.3 million legal costsin 3Q FY2007 arising from the successful appeal on the investmentproperty, which was awarded with costs. The increased activities alsoled to a $0.3 million increase in finance expenses to $1.4 million in3QFY2008.

In view of the Group's strong performance in 3QFY2008, earnings pershare rose significantly from 0.19 cent to 0.67 cent. Net asset valueper share increased by 2.32 cents from 8.93 cents as at 31 December2007 to 11.25 cents as at 30 September 2008.
CommentaryAlthough most sectors have been affected by the global economicmeltdown, Yongnam has not been adversely affected. Conversely, theGroup had been active and busy, working on a number of large projectspreviously secured from various governmental authorities in Singapore,India and Dubai.

In addition, all six projects that the Group had secured for the Marina Bay SandsTMIntegrated Resort construction have commencedand are progressingsmoothly, with one contract already completed, another contract to besubstantially completed by the end of thisyear and the other fourcontracts scheduled for completion by the end of 2009 as planned. Withregard to the Marina Bay SandsTM Integrated Resort projects, the Group had received all progress payments for completed works on schedule.

The Group's order book as at the end of September 2008 was $247.2million, 71.5% higher than the $144.1 million booked at the end ofSeptember 2007.

The Group's gearing as at 30 September 2008 remains undemanding at 0.69 times.

The Group's strong performance is expected to continue into4QFY2008. The Group expects to maintains a strong order book going intoFY2009.

臥龍先生

YONGNAM HOLDINGS LIMITED
NEWS RELEASE YONGNAM ACHIEVES RECORD REVENUE AND EARNINGS IN FY2008
- Revenue almost doubles to S$332.7 million
- Net profit (excluding exceptional gain in FY2007) surges 203.2% to S$33.9 million
- Highest order book of S$504 million as at December 31, 2008
- Maintains low net debt-to-equity ratio at 0.56 as at December 31, 2008
- Proposes final dividend of 0.4 Singapore cent per share

Both of the Group’s core divisions, Structural Steelworks and Specialist Civil Engineering, registered strong growth in FY2008. The Group’s main revenue contributor, Structural Steelworks, saw revenue doubling from S$122.6 million in the previous corresponding period (“FY2007”) to S$254.9 million in FY2008. This was mainly due to the commencement of projects such as the New Delhi International Airport and the Marina Bay Sands™ Integrated Resort (“Marina IR”), as well as increased contribution from the Dubai Metro Rail. Specialist Civil Engineering also achieved a significant 51.2% growth in revenue, from S$51.5 million in FY2007 to S$77.8 million in FY2008, mainly due to commencement of contracts at the Marina IR. On a geographical basis, Singapore remained the core revenue generator, with revenue growing 43.2% to S$155.7 million in FY2008. The Group’s continuing participation in infrastructural developments in Dubai, such as the Dubai Metro Rail, boosted revenue from the Middle East by 120.0% to S$143.3 million. With the commencement of the New Delhi International Airport project, the Group recorded a maiden contribution of S$31.7 million from India. In Malaysia, the Group’s new fabrication factory in Nusajaya, Johor, which commenced operations in September 2008, supported the 110.8% increase in revenue to S$12.9 million in FY2008.

Said Mr Seow: “Yongnam’s well-diversified revenue stream is part of the Group’s risk management strategy. In addition, the governments in certain key markets that we have focused on are committed to pump-prime the local economies through various stimulus packages, most of which have a substantial amount devoted to infrastructural developments. This is certainly another positive factor for us.”

In line with higher revenue and improved margins, the Group’s gross profit increased significantly by 136.7%, from S$31.4 million in FY2007 to S$74.4 million in FY2008. General and administrative expenses for the Group also rose in tandem with the higher level of business activities, from S$16.1 million in FY2007 to S$32.2 million in FY2008. FY2007 expenses were also offset by a S$1.3 million write-back in legal cost arising from the successful appeal on an investment property. As such, Yongnam recorded a 38.1% increase in net profit to S$33.9 million in FY2008. Excluding the S$13.4 million write-back of impairment in respect of an investment property and a leasehold property in FY2007, net profit increased more than three-fold from S$11.2 million in FY2007 to S$33.9 million. The Group’s balance sheet remained strong, with cash position of S$40.5 million and shareholders’ equity of S$147.7 million as at December 31, 2008. Net debt-to-equity ratio improved from 0.65 as at December 31, 2007 to 0.56 as at December 31, 2008. Yongnam’s laudable FY2008 performance also boosted earnings per share from 2.14 cents in FY2007 to 2.79 cents in FY2008, and strengthened net asset value per share from 8.93 cents as at December 31, 2007 to 12.14 cents as at December 31, 2008. Excluding the S$13.4 million write-back of impairment in respect of an investment property and a leasehold property in FY2007, earnings per share surged 187.6% from 0.97 cent in FY2007 to 2.79 cents. To reward its loyal shareholders, Yongnam has proposed a one-tier tax-exempt final dividend of 0.4 Singapore cent per share.

臥龍先生

終於~~~

To reward its loyal shareholders, Yongnam has proposed a one-tier tax-exempt final dividend of 0.4 Singapore cent per share.

臥龍先生

Review of Performance In spite of the global economic slowdown which accelerated sharply during the last quarter of the financial year ended 31December 2008 ("FY2008"), the Group continued to perform well. Group revenue almost doubled, registering an increase of91.1% from $174.1 million in the financial year ended 31 December 2007 ("FY2007") to $332.7 million in FY2008.
Both the Group's core divisions, Structural Steelworks and Specialist Civil Engineering, recorded strong growth in FY2008.
Revenue from Structural Steelworks grew by more than two-fold, from $122.6 million in FY2007 to $254.9 million in FY2008. Thiswas mainly attributable to the commencement of projects such as the Marina Bay SandTM Integrated Resort, the New DelhiInternational Airport project and increased contribution from the Dubai Metro Rail project.
Revenue from Specialist Civil Engineering increased by 51.2%, from $51.5 million in FY2007 to $77.8 million in FY2008. This wasmainly due to the commencement of projects at Marina Bay SandsTM Integrated Resort.
On a geographical basis, Singapore remained the core contributor, with revenue growing 43.2% to $155.7million in FY2008,compared to $108.7 million in FY2007. Revenue from Dubai more than doubled from $65.1 million to $143.3 million whilst Indiarecorded a maiden contribution of $31.7 million with the commencement of the New Delhi International Airport project. InMalaysia, the Group's new fabrication factory in Nusajaya, Johor, which commenced operations in September 2008, supported adoubling of revenue to $12.9 million, compared to $6.1 million in FY2007.
In line with the higher revenue and improved margins, gross profitincreased significantly by 136.7%, from $31.4 million in FY2007to $74.4 million. Excluding the S$13.4 million write-back of impairmentin respect of an investment property and a leaseholdproperty in FY2007, profit after tax jumped three-fold, from $11.2million to $33.9 million.
In view of the increased business activities, general andadministrative expenses increased from $16.1 million in FY2007 to $32.2million in FY2008. This is mainly due to increased staff costs,share-based compensation and depreciation as well as $1.3 millionof write-back in FY2007 of legal cost arising from the successfulappeal on the investment property.
Earnings per share, excluding the write-back of impairment in respect of an investment property and a leasehold property,improved significantly, from 0.97 cent in FY2007 to 2.79 cents in FY2008. Group net asset value per share increased by 3.21cents, from 8.93 cents as at 31 December 2007 to 12.14 cents as at 31 December 2008.
The Group's net gearing has also improved, reducing from 0.65 times as at 31 December 2007 to 0.56 times as at 31 December2008.
CommentaryAlthough most sectors have been affected by the global economic meltdown, Yongnam has not been adversely impacted.Conversely, the Group had been active and busy, working on a number of major public-sector projects secured in Singapore, Indiaand Dubai. In addition, all seven contracts that the Group had secured for the Marina Bay SandTM Integrated Resort project havecommenced and are progressing smoothly.
The Group's order book as at the end of December 2008 was $504million, compared to $162 million booked at the end ofDecember 2007. This is the highest order book in the Group's history.The Directors expect the Group to continue to perform well inFY2009.

臥龍先生

Yongnam (S$0.09) – 4Q09 results - Keeping busy with strong order book
Within expectations. 4Q08 core net profit of S$9.3m (+162% yoy) was within our forecast and market expectations. FY08 net profit of S$33.9m was 3% higher than our forecast and 4.5% higher than consensus. 4Q08 revenue reached S$102.7m (+105% yoy) on strong structural steelwork and specialist civil engineering revenue. 4Q08 gross margin was 25.1% vs. 18.2% in 3Q08 and 19.9% a year ago. A first and final dividend of 0.4 Scts was declared.


Operational review. The commencement of projects at Marina Bay Sands and the New Delhi International Airport as well as increased activities at the Dubai Metro Rail boosted revenue. FY08 revenue from structural steelworks rose 108% yoy to S$254.9m, while specialist civil engineering revenue rose 51.2% yoy to S$77.8m. FY08 gross margin was 22.4% vs. 17.7% a year ago.


Financial position. Net gearing fell to 0.56x from 3Q08’s 0.64x. Receivable days were well managed at 40 days while payable days stood at 97 days. Inventory days of 195 are normal as Yongnam needs to procure steel in advance for fabrication in-house before delivery on-site for erection. Operating cash flows since 2Q08 have been healthy, at S$24.8m in 4Q08.


Outlook. Yongnam is relatively insulated as it has been busy with large projects in Singapore, India and Dubai. Order book of S$504m as at end-2008 was 104% higher than the S$247.2m booked in Sep 08. Management expects the strong performance to continue into FY09.


Maintain Outperform. We maintain our net profit forecasts for FY09-10 and introduce FY11 forecasts. We conservatively forecast a revenue and profit decline for FY10 given that new contracts have not yet been awarded. We base Yongnam’s target price on an unchanged 0.8x CY09 P/BV, in line with peers’ target, which translates to a target price of S$0.12 (previously S$0.11, based on 0.8x CY09 P/B).

臥龍先生

AWARD OF C487 CONTRACT FOR THE MARINA COASTAL EXPRESSWAY
The Directors of Yongnam Holdings Limited (“Yongnam” or the “Group”), a wellestablished structural steel contractor and specialist civil engineering solutions provider, are pleased to announce that the Group has been awarded its second contract for Singapore’s highly anticipated new expressway, the Marina Coastal Expressway (“MCE”).

The dual five-lane, 5km-long MCE is a strategic underground East-West transport link between three major expressways, catering to the projected increase in traffic volume generated by the high-density developments in the Marina Bay area.

Yongnam will support construction works by the main contractor, Daelim Industrial Co. Ltd, through the lease supply, fabrication, installation and removal of temporary waler, strut, splay and bracing for the Contract. The main challenge for the Contract lies in the provision of the horizontal support member to cater to the wide width of the MCE tunnel, which can stretch to about 90 metres in length for some areas. The Contract is targeted for completion by end 2013.

The Contract, valued at approximately S$53 million, is expected to have a material impact on the Group’s financial performance for the financial year ending December 31, 2009.

臥龍先生

Yongnam (S$0.09) - Another MCE contract in the bag
Estimated order book of S$510m
Two out of six so far. Yongnam was awarded its 2nd contract at the Marina Coastal Expressway (MCE), valued at S$53m. It will support the construction works by the main contractor, Daelim Industrial Co.Ltd, through the lease supply, fabrication, installation and removal of temporary waler, strut, splay and bracing. To recap, Yongnam’s 1st MCE contract was clinched in Dec 08, where it was awarded its single largest contract to date, worth S$185.5m. This was to support the main contractor, Penta-Ocean Construction Co., Ltd., through the provision of temporary steel pipe pile cofferdam, steel waling and
strutting works, construction decking and other associated works, to be constructed in two stages.


Positive impact on FY09. The two contracts call for the provision of the horizontal support member to cater to the wide width of the MCE tunnel, which can stretch to about 90 metres in length for some areas. The contracts are targeted for completion by end 2013. Both contracts are expected to have a material impact on the group's FY09 performance.


Order book at historical high. As at 31 Dec 08, Yongnam’s outstanding order book stood at S$504m. With the addition of the new S$53m MCE contract and assuming it recognises about S$25m of revenue each month for Jan-Feb 09, we estimate the outstanding order book at around S$510m as at 3 Mar 09.


Comments
More MCE contracts coming. The award of the 2nd contract attests to Yongnam’s strong position to pitch for large-scale civil engineering works on the back of its track record and availability of resources. As the 2nd contract is only S$53m, we believe its margins could be marginally better as it is only adjacent to its 1st contract and Yongnam may reap some savings from lower logistics expenses. Given the lack of large scale civil engineering expertise in Singapore, we believe Yongnam may yet enjoy another contract coming its way. The MCE project has six packages, and as all have already been dished out to the main contractors, it will be a matter of time before specialist sub-contractors are called in.


Underestimated order book for MCE. We had previously assumed a S$200m order book to be clinched. With the 2nd contract, this is already exceeded at S$238.5m. As such, we raise our MCE order book assumption to S$350m, should it win another sizeable contract or two smaller ones.

Valuation and recommendation
Maintain Outperform. We raise our net profit forecasts for FY09-11 by between 4.1% to 16% to account for the new order book assumptions. However, we are still conservatively forecasting a revenue and profit decline for FY10-11 given that certain large contracts have not yet been awarded. We base Yongnam’s target price on an unchanged 0.8x CY09 P/BV, in line with peers’ target, which translates to a target price of S$0.12.

Iamnotaguru

原帖由 臥龍先生 于 27-2-2009 05:53 PM 发表
終於~~~

To reward its loyal shareholders, Yongnam has proposed a one-tier tax-exempt final dividend of 0.4 Singapore cent per share.

0.4 cent means holding 5000 share , u got 20 bucks....
but all the posting make ppl so tempting to buy more!

臥龍先生

原帖由 Iamnotaguru 于 11-3-2009 02:46 PM 发表



0.4 cent means holding 5000 share , u got 20 bucks....
but all the posting make ppl so tempting to buy more!

DY 不是很高,  大概只有 5%. 1LOT 現在也只需付 SGD85

Iamnotaguru

在它最高峰时进场了。
现在很想 买个20 个lot

臥龍先生

原帖由 Iamnotaguru 于 11-3-2009 10:38 PM 发表
在它最高峰时进场了。
现在很想 买个20 个lot

最高峰 ? 是指它在SGD 0.50 的時候嗎 ? 我也是大概那個時候開始買的,  那里知道它宣布越多好消息,  股價就越跌, 一路往南走...哈哈~~~

Iamnotaguru

差不多那个时候， 没有到 0。5 但也差不多。
我要average the cost!!!!!! 等薪水进，就加码， 但似乎要很久才会有回报。不像capitaland, 有空没空就几十cents 的波动。
ok ok, invest invest....not gamble! need always remind myself