Yongnam

Yongnam: 1Q12 results in-line. Despite two project delays, Yongnam managed to deliver an acceptable result, helped by the sterling performance of its Specialist Civil Engineering segment. The group’s ability to win notable projects in both SG and overseas is paramount to another good year. Contracts for Marina Coastal Expressway, MRT DL2, NS Line Extension, and Hong Kong MTR projects boosted revenue +38% yoy to $43.5m in 1Q12. Lack of fresh orders and start-up delays for two major projects resulted in the revenue of Structural Steelworks declining to $23.8m (-45% yoy). In 1Q12 alone, the group had secured three contracts worth a total $743m. Management said the order book remains at a healthy $469m. Overall outlook for the infrastructural sector continues to be positive and prospects for Yongnam remain attractive with the group bidding for projects worth $1.3bn in Singapore and the region, all expected to commence later in the year. CIMB Maintains O/p with $0.33 TP.