Yongnam

Yongnam: Secured 3 contracts worth $52.1m. The first is a specialist civil engineering contract for the MRT Downtown Line 3 for Upper Changi Station due for completion in 2015. Co will also provide the fabrication of jack casing structures for six ship sets of offshore structures to Jurong Integrated Structure from mid July 2012 to early Aug 2013. The 3rd contract is for structural steelworks for a 9-storey business park development located at Portsdown Road/Fusionopolis Way. Orderbook as of last results date was approx $462m.

Citi maintains Buy on Yongnam with TP$0.31 and highlights downside risk of potentially dilutive impace from 365m outstanding warrants (exercise price of $0.25 with 30% of share base). Notes that fabrication of jack casing for Jurong Integrated Structure will aid co in extending ambitions into the offshore segment over mid to long term.