Yongnam

Yongnam: DMG reckons Yongnam is likely only to see a turnaround in FY15, as project order wins are coming in slower than expected. With fixed costs every quarter and facing cost overruns in projects like the National Art Gallery and South Beach Development, it is likely to post losses for FY14. However, Yongnam continues to trade at below book, ie 0.93x P/BV, making the downside limited. House maintains BUY with TP lowered to $0.27 (from $0.29).