Yongnam

Yongnam: CIMB cites that 3Q14 losses were expected. Although 9M14 losses appear deeper than its FY14 forecast due to lack of contracts until now, the contribution of various structural works projects in Singapore and HK in 4Q will stem the losses experienced in FY14. CIMB makes drastic cuts to its FY15 estimate for margin pressure given the current pressing environment but believe the group should return to black then. House maintains Reduce rating with TP of $0.18.