Yongnam

Yongnam: 1Q14’s net loss of $1.9m reversed net profit of $11.5m in 1Q13, while revenue saw a 12.4% slump to $71.8m with the completion of MCE at end FY13. Specialist Civil Engineering revenue fell 22%, with contributions mainly from MRT DTL 2 and 3, as well as HK MTR. Structural Steelwork revenue fell 4.5%, and was contributed by Sports Hub, National Art Gallery, Market Street and Marina One. Yongnam won $54.3m of orders in the quarter, bringing order book to $316m at end Mar. Management is currently actively pursuing $1.2b worth of new projects in S’pore, HK, Macau and Middle East, which if won, is expected to begin contributing from 2H14 onwards. Regarding the bid for Hanthawaddy Airport in Myanmar, the Yongnam led consortium has re-sumitted its proposal on 22 April. Yongnam trades at ~1x P/B.