Yongnam

Yongnam: 4Q12 results broadly in line. Revenue at $84.6m, -5% yoy, +18% qoq. The expected yoy drop in revenue was due to lower contributions from its structural steelworks (SS) division following the completion of the higher margin iconic projects last yr. This resulted in a margins decline. Net profit at $9.7m, -41% yoy, -6% qoq. Co proposed 1ct dividend, unchg yoy. Current order book stands strong at $400m. Nevertheless CIMB remains upbeat on outlook. Believes previously delayed projects will get ramped up in 1Q13. Notes the group also secured various landmark projects that will boost contributions in FY13. Highlights possible catalyst in Myanmar, where Yongnam is part of a consortium that will be bidding to build and operate a new international airport. Tender closes in late April amid keen competition. The house keeps its Outperform rating, raises TP to $0.36 from $0.33.