Yongnam: CIMB maintains Outperform with $0.40 TP. Note that with a healthy pipeline of projects for bidding and measures in place to manoeuvre cost challenges, remain upbeat on grp’s 2011 prospects. No change to our order-book assumptions, EPS estimates or TP of $0.40, still based on 8x CY12 P/E, or a 20% discount to its mid-cycle multiples….
Continue to like grp for its healthy order book of $450m as at end-Dec 10 and undemanding valuations against peers (5x CY12 P/E vs peer average of 10.6x). Stock catalysts are expected from contract wins for projects like the MRT Downtown Line and Singapore Sports Hub. Co. is gunning for $1.4bn of projects this yr.
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