Yongnam

Yongnam: Yongnam clinched a landmark $168m subcontract for works at Marina One mixed-development, awarded by a JV between Hyundai Engineering and Construction and GS Engineering & Construction Corporation. The order to fabricate and construct a record 30,000 tonnes of structural steelwork will lift group's order book to $397m. The contract consists of three packages which includes the conversion of the original reinforced concrete design of the office towers to a composite structural steel design, as well as the application of fire-proofing and supply & installation of a specialist floor damping system. Works for the subcontract is expected to be completed by 1Q16 and expected to have a positive impact to the group's current financial year onwards. The Marina One project is being developed by M+S Pte Ltd, a 60:40 JV between Khazanah Nasional Bhd and Temasek Holdings Pte. Ltd. The iconic project at the upcoming central business district located at Marina South will comprise two 30-storey office blocks, two 34-storey residential blocks and four basement levels. At 0.24, Yongnam trades at a steep 14.0x annualized 3Q13 P/E, compared to industry peer Tiong Seng's 7.8x.