Yongnam

Yongnam: Grp has secured a significant project worth $21.3m to supply, fabricate, surface-treat and deliver 7,000 tons of structural steel for a belt conveyor structure for German co, Beumer Group in Msia. This is Yongnam’s first significant project in Msia since its last major project at Tanjung Bin Power Plant in 2005 and grp note that the contract signals the re-opening of an old mkt which has the potential to provide a stream of new contracts as grp continue to diversify its markets. Project is expected to be completed in 3Q13 and is expected to have a positive impact on grp’s FY12 results. We note that latest contract win brings grp’s orderbook to approximately $496m, underpinning earnings visibility till 2014-2015. Separately, grp is also expected to be a major beneficiary in SG’s latest announcement in the construction of the $18b MRT Thomson Line announced yesterday, with backed by its very strong track record in the recent construction of SG’s Downtown Line. Grp has also in its latest qtrly presentation earmarked the Thomson Line as an upcoming potential project to bid for.