Yongnam

Yongnam: Maybank-KE reiterate BUY and $0.40 TP. House believe Yongnam has hit the bottom of the cycle and is geared up and ready to replenish its orderbook. Yongnam is tendering for $670m of potential projects which would commence in 2H13. Sixteen Thomson Line civil contracts have been placed out, with three already awarded to the main contractors. Expect subcontracts will be given out in late 2013 or early 2014. House peg Yongnam to its closest peer, Malaysia-listed Eversendai at 11x forward PER.