Yongnam

Yongnam: 3Q10 rev was $80.8m -2.2%yoy, -4.1%qoq. Profit increased to $13.7m +20.6%yoy, +2.4%qoq due to improved margins. Rev fell due to substantial completion of projects at MBS and Dubai Metro but margins were higher due to improved efficiencies and higher contribution from the Spec Civil Engrg segment…

Orderbook remained strong at $451m securing contracts in Aug ($25m), Sep($27.5m) and Oct ($56.5m). Mgmt remains optimistic on growth of civil projects such as MRT DTL Phase 3. EPS for 9mths is at 3.23c, est P/E is 7.09x close to historical avg of 7.20x. DBS est 2010 P/E is at 6.6x before results. Peer CSC est P/E is at 12.46x