Yongnam
Future Of Yongnam 1/12/2008
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Good support @ 0.21 and just have to wait till it hits 0.30
Yongnam just announced after market closed today that it won S$ 40.7 million of 2 new contracts:
8th Marina Bay Sands Integrated Resort Control worth S$ 17.6 million to construct a segment of the Lion Garden Bridge and a cooling tower
3rd Marina Coastal Expressway Contract C483 S$23.1 million, awarded by Samsung C&T Corporation
Both contracts are expected to have positive impact on Yongnam's Group financia performance for Financial Year ending 31 December 2009.
Good luck to Retail Investors and Big Boys...
| YONGNAM: Credit Suisse upgrades to Outperform, TP 30 cts |
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| Written by Sim Kih |
| Saturday, 06 June 2009 |
CREDIT SUISSE upped its rating on Singapore’s largest structural steel contractor, Yongnam, to “Outperform” on Thu, raising its target price to 30 cents from 18 cents.
Of the 4 construction stocks it currently covers, Yongnam is the only positive pick.
The Swiss broker sees Yongnam as a frontrunner to securing strutting sub-contracts of large-scale infrastructure projects by virtue of its leading market share.
Yongnam had doubled its 1Q09 net profit yoy to $4.8 million and had an order book of S$517 million as at 31 Mar 2009.
The broker expects Yong Nam’s order book to reach S$700 million by FY10, and says this will be progressively recognized over the subsequent three years.
Yong Nam closed at 24.5 cents on Friday, 22% short of its price target.
Outlook does not justify sector's price run-up
Construction stocks have more than doubled in price over the past 3 months compared to a STI advance of about two-thirds, but Credit Suisse believes that this “price outperformance does not reflect corresponding fundamentals.”
3 areas of concern were cited:
* Firstly, 1Q09 construction demand was down 57% yoy to S$4.2 billion, and the broker believes that total contracts awarded in 2009 would likely come in at the low end of the Building & Construction Authority’s forecasts of S$22 billion to 28 billion.
* Secondly, the pipeline of public sector projects is unlikely to offset the deceleration in private sector orders. Private sector orders contributed 60% of total construction demand in 2008, and have fallen 86% yoy.
* Thirdly, average order book backlog has declined sharply, reflecting slowing private sector contract momentum resulting from weaker property market fundamentals.
Construction Stocks covered
by Credit Suisse |
3 Jun 09 Price |
Call |
Target Price |
|
Hong Leong Asia
|
S$1.42
|
Neutral
|
S$1.20
|
|
Tat Hong
|
S$1.04
|
Underperform
|
95 cents
|
|
Tiong Woon
|
48 cents
|
Neutral
|
45 cents
|
|
Yongnam
|
25 cents
|
Outperform
|
30 cents
|
Credit Suisse remains cautious on Tat Hong and Tiong Woon, due to a sustained decline in crane rental rates.
Recent story: YONGNAM benefits from government spending
Yongnam's steel structures used in skyscraper.
“Revenue contribution from structural steelworks would be driven primarily by private sector orders, while specialist civil engineering works should rise on the back of Marina Coastal Expressway and Downtown Line related contracts,” said Credit Suisse.
”The strong operating leverage of Yongnam’s model should also drive margin expansion gains,” added the broker.
Yongnam is Credit Suisse's top pick for Singapore's construction sector.
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YONGNAM: Credit Suisse upgrades to Outperform, TP 30 cts
http://www.nextinsight.com.sg/content/view/1204/60/
True, d construction sectors n developers are rushing out for d last couples of weeks liao. Ha ha, even BBR also run fr 3 cts to today peak of 8 cts, marvelous. Ultimately, US market is still d driving force to escalte d upturn of d global market. Hope for d best loh.
Keeping ds burger for quite sometime liao. Cheers.
samloh28 ( Date: 22-May-2009 20:22) Posted:
Hi AK,
Normally, history will repeat itself. If we look at past trend, the stock market, based on past 17 years, will go back to its previous peak and break it to form a new peak, i.e. its last peak was approx 3800, it is likely to go above 3800 during the next bull run. This is based on previous statistics and probability. Chances are if the USA start to register growth in its economy, even 0.1% from Sep 2009, it is likely bull run will commence from USA stretching to Asia, which has already started as China has hit the bottom in 1st quarter 2009 and is recovering strongly now and Hong Kong stocks echoed the China economy which is growing now and target to hit 8% growth this year through its RMB 1 Trillion.
Coming back to Singapore, the economy dropped - 10.1% for 1st quarter year-on-year, the construction sector is brightest spot which registers growth of 24.4%. It means that construction activities are still buoyant for 2009. And Yongnam, if based on previous bull-run, may just hit 50 to 60 cents or higher. Big boys and retailers know that and it may explain the run-up in price for construction sector. |
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Huge buying up volumes!!
Hi AK,
Normally, history will repeat itself. If we look at past trend, the stock market, based on past 17 years, will go back to its previous peak and break it to form a new peak, i.e. its last peak was approx 3800, it is likely to go above 3800 during the next bull run. This is based on previous statistics and probability. Chances are if the USA start to register growth in its economy, even 0.1% from Sep 2009, it is likely bull run will commence from USA stretching to Asia, which has already started as China has hit the bottom in 1st quarter 2009 and is recovering strongly now and Hong Kong stocks echoed the China economy which is growing now and target to hit 8% growth this year through its RMB 1 Trillion.
Coming back to Singapore, the economy dropped - 10.1% for 1st quarter year-on-year, the construction sector is brightest spot which registers growth of 24.4%. It means that construction activities are still buoyant for 2009. And Yongnam, if based on previous bull-run, may just hit 50 to 60 cents or higher. Big boys and retailers know that and it may explain the run-up in price for construction sector.
Biz, structural steelworks, specialist civil n mechanical engrg 1Q revenuee n earning 2 fold. Ds was due to contribution fr several ongoing n ew mega pjts which commenced during d same q.
Amazing, it low fr 5 cts yr low till today. AK dumpped it end 07, but still keeping d entitled warrant, of 3 cts. Got it at 41 cts in early 07, fingers black though, didn't follow up when it px below 10 cts.
Maybe same thing as with Wee Hur ?
price going up, vol is very high ... anyone got any news on this one ?
12:21:09 0.195 10,000 Buy Up
12:13:19 0.195 20,000 Buy Up
12:11:30 0.195 10,000 Buy Up
12:11:09 0.190 1,730,000 Buy Up
12:11:07 0.190 500,000 Buy Up
12:11:02 0.190 1,000,000 Buy Up
12:10:59 0.185 25,000 Sell Down
12:06:31 0.190 200,000 Buy Up
12:05:44 0.190 100,000 Buy Up
11:46:54 0.190 20,000 Buy Up
10:44:16 0.185 100,000 Sell Down
10:26:09 0.185 30,000 Sell Down
10:05:18 0.190 30,000 Buy Up
Noted. But the economy now is so unstable. like the virus. dunno when will invade singapore lor. now only prevent measure. so solution yet. what the impact if really happen in singapore. believe SMRT will hurt most.
Excellent results from Yongnam.
Net profit of S$ 9.9 million for 1st quarter 2009, up 104.2% year-on-year
EPS : 0.81 cents, up 102.5%
NAV : 13.27 cents,
Note that for full year, EPS should be 0.81 x 4 quarters = 3.2 cents
If based on previous similar cases, for growth, such as Venture Corp, share price should be worth EPS x growth rate. For construction, growth say at 20%. Value of Yongnam should be worth 3.2 x 20 = 64 cents.
But need to be patient and wait for bull run in next 6 mths to 1 year.
Hope you are right. Picked up this counter today at 0.195.
Thanks for the insight ;)
samloh28 ( Date: 11-May-2009 21:14) Posted:
Attended Yongnam's AGM on 29 April 2009, the outlook for Yongnam is optimistic. Yongnam is the leading structural steel fabricator and erector in Singapore. The nearest rival is only 1/5 Yongnam's size. With the government pushing approximately S$ 60 billion infrasturture in next 10 years, each year is worth S$ 6 billion. With temporary works worth about 15%, the value of structural steel is about S$ 900 million each year. Assuming that Yongnam takes about 60%, it will be about S$ 540 million. Note that for 2008, Yongnam has record revenue of S$ 502 million.
If you remember the last bull run in early 2007 to Oct 2007, Yongnam ran up from 3 cents to 52 cents, on the backdrop of strong IR projects. Comparing both then and now, Yongnam is in better position, with low gearing of less than 0.5, strong cash-flow. And many potential Marina Coastal Expressway MCE jobs under negotiation. Yongnam already got S$ 50 million for C487 and S$ 185 million for C485. There are C482, C483 and C486 for MCE. Also, the downtown Line projects are underway. Yongnam is involved in major building projects in past year, such as IR, Fusionpolis, ION, one-north, Suntec City etc.
If the economic gets better towards the end of the year, there will be more commercial and industrial projects, coupled with infrasture structure projects, Yongnam will likely to reap record profits and growth again. If you look at growth stocks, for example, in the past, the likely price is earnings per share x growth rate(%). A good example previously was Venture Corp. Applying to Yongnam, it is 2.8 cents x 20 = 56 cents. Good luck to the BBs and retail investors. Just need to wait for another 6 months to 1 year to realise the potential gains of Yongnam stock price..... |
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Attended Yongnam's AGM on 29 April 2009, the outlook for Yongnam is optimistic. Yongnam is the leading structural steel fabricator and erector in Singapore. The nearest rival is only 1/5 Yongnam's size. With the government pushing approximately S$ 60 billion infrasturture in next 10 years, each year is worth S$ 6 billion. With temporary works worth about 15%, the value of structural steel is about S$ 900 million each year. Assuming that Yongnam takes about 60%, it will be about S$ 540 million. Note that for 2008, Yongnam has record revenue of S$ 502 million.
If you remember the last bull run in early 2007 to Oct 2007, Yongnam ran up from 3 cents to 52 cents, on the backdrop of strong IR projects. Comparing both then and now, Yongnam is in better position, with low gearing of less than 0.5, strong cash-flow. And many potential Marina Coastal Expressway MCE jobs under negotiation. Yongnam already got S$ 50 million for C487 and S$ 185 million for C485. There are C482, C483 and C486 for MCE. Also, the downtown Line projects are underway. Yongnam is involved in major building projects in past year, such as IR, Fusionpolis, ION, one-north, Suntec City etc.
If the economic gets better towards the end of the year, there will be more commercial and industrial projects, coupled with infrasture structure projects, Yongnam will likely to reap record profits and growth again. If you look at growth stocks, for example, in the past, the likely price is earnings per share x growth rate(%). A good example previously was Venture Corp. Applying to Yongnam, it is 2.8 cents x 20 = 56 cents. Good luck to the BBs and retail investors. Just need to wait for another 6 months to 1 year to realise the potential gains of Yongnam stock price.....
All penny stock also run... that is normal for market is moving head as they think the bank problem is now settle.. 5 trillon sitting in the world money market start to flow into equities again..
