Yongnam

Yongnam: Announced that it has secured three contracts worth a total of $63.8m contracts comprising of 2 structural steelworks in SG and one specialist civil engineering contract in HK. The two local contracts are for steelworks for a new 40-storey commercial development located at Market Street and the revamping of a major shopping mall in the Marina Bay area. In HK co has won a contract for the Hong Kong Express Link Central-Wan Chai Bypass Tunnel. Co will supply 7.6k tons of structural steel for the 40-storey dev and the project is expected to complete by end-2013. For the shopping mall, Yongnam will supply 3.5k tons of steel for new floors and structure and the project is expected to complete in 2014. We note that latest wins brings YTD orderwins to approx. $142.6m and orderbook to approx $470m, underpinning earnings visibility till 2014-15. Grp note the ability to secure another specialist civil engineering contract in HK, further boost Grp’s regional track record. There is still an overhang on the counter as CAD investigations on co’s CEO were reported previously in Feb 2012.