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Finally this baby of mine moves,hooray! 30 cents,hear we come
the edge is good... business times has got 1 editor i think her name is teh hooi leng under the section " show me the $" , she is also a writer in the edge too i think....
Another advice to investors: read the Edge and subscribe to it for 1.5 years. Very low investment cost only. My good friend and guru used to pass a few copies to me. the Edge contains many latest and highly information on investment. Again, do your own research, analysis and judgement. It is certianly one of the best and it comes to my letter box every Friday. An example, is that few months back, it correctly predicted Allgreen amongst others which may be subject of privatisation and share buy-back which I had earlier posted in Share Junction. Now, the Edge amongst others recommended buy for Lian Beng and Yongnam.
Just a quick estimate of the structural work. If it is worth S$12.2 billion, the structural steel is worth about S$1.2 billion,
which is worth lots of money, which is equivalent to what Yongnam is tendering for. It means that Yongnam may have
the potential to tender for S$ 2.4 billion worth of contracts in next 2 years ! Definitely plus for Yongnam investors.
Just a quick gauge, for Marina Bay Sands, it was worth S$ 5 billion or so, and it generated so much hype and attention
and strong contracts for Yongnam and the construction as whole. Just need to be patient and watch for contracts to be awarded.
As mentioned before, Yongnam is the biggest structural steel contractor in Singapore and the nearest is only about 1/5 its
size, it is in good stead to win the big contracts on these Marina Bay South parcel, Rochor-Ophir, KTM etc...
The upcoming Malaysia and Singapore government plans to develop the land-swop projects at Marina Bay, Beach Road, Bukit Timah, and KTM land etc,
will yield S$12.2 billion worth of contracts and about 5 million sq ft of gross area and will definitely give a boost to the structural contractor likey Yongnam
and Building Contractor like Lian Beng. More construction up for grabs in the next few years which will be boom for the construction counters.
http://www.remisiers.org/cms_images/Yongnam-1406111.pdf
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We estimate that YNH is bidding for S$1.2bn worth of projects this year. The outlook in Singapore remains underpinned by numerous opportunities in the civil engineering space. The Middle East is another market with considerable infrastructure spending plans. We believe if the political situation stabilises there, construction firms like YNH could stand to reap major benefits.
To date, the group has won S$73m worth of specialist civil engineering projects. With contracts for the proposed 21km-long, 16-station MRT Downtown Line 3 under bidding, we may see some contract wins in 2H11. If successful, there would be little slack time for YNH’s specialist civil engineering team, as the government has given the go-ahead for the construction of the North-South Expressway at a cost of S$7bn-8bn, for completion by 2020. This is in addition to plans for two new MRT lines: Thomson Line and Eastern Region Line.
No change to our order-book assumptions, EPS estimates or target price of S$0.40, still based on 8x CY12 P/E, a 20% discount to its mid-cycle multiples. We also like YNH for its undemanding valuations against peers, at 5.2x CY12 P/E vs. the peer average of 7.6x. We expect stock catalysts from contract wins for projects such as the MRT Downtown Line and structural steelwork projects in the Middle East.
UTPERFORM
http://www.remisiers.org/cms_images/Jun13_2011_Sunnysideup.pdf
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Strong pipeline of contracts
Yongnam has won contracts for work on every MRT line as well as major expressways. For the Downtown Line (DTL) Stage 2, it has secured $109m worth of contracts to-date. For the Marina Coastal Expressway (MCE), it was awarded six sub-contracts worth $363m, or about 8.5% of MCE’s total cost of $4.3b. A strong pipeline of contracts is in store over the next five years. These include sub-contract tenders for DTL Stage 2, DTL Stage 3 projects worth $5b, and the upcoming North-South Expressway which the government has estimated a spending of $7-8b.
Yongnam looks set to outdo itself this year. It secured new contracts worth a total of $240m last year and has won $217m worth of new orders in the first five months of this year, or 90% of last year’s total. Gross margins, already at enviable levels of 28.6% in FY10, have strengthened to 33.2% in 1Q11. |
08 June 2011
Credit Suisse says it expects Singapore's public sector construction demand to catch up with population growth in the next two years. " We see upside risk to Building & Construction Authority estimates, given recent statements by the new National Development Minister to raise the number of build-to-order units in 2011 by 13% to 25,000, as well as to sustain the rollout into 2012." Within the sector, it says more liquid names with public residential demand exposure include, Wee Hur (E3B.SG) flat at S$0.265, Sim Lian (S05.SG) up 1.1% at S$0.470, and Chip Eng Seng (C29.SG) up 1.1% at S$0.465, all unrated. It notes of the companies, Wee Hur and Lian Beng (L03.SG) have the largest orderbook backlog " we also see Yongnam (Y02.SG) as a frontrunner to secure the strutting sub-contracts of large-scale infrastructure projects, given its scale and track record. We see orderbook rising in-line with demand for civil engineering works." CS keeps Yongnam at Outperform with a S$0.44 target the stock falls 1.9% to S$0.255. (matthew.allen@dowjones.com)
Credit Suisse expects Singapore construction sector demand to remain firm in 2011, likely at higher-end of Building & Construction Authority's S$21 billion-S$27 billion forecast. " We see public sector demand driven by housing projects and civil engineering works, with the latter supported by the rescheduling of previously unawarded Downtown Line 3 contracts." Expects residential, institutional projects form bulk of private sector demand, backed by firm property market fundamentals, recovery in office sector demand. Says risk private residential projects being brought forward could result in tightening of sector resources, drive upside to construction costs, " with pricing and scale economies benefiting larger contractors and material suppliers." Tips Yongnam (Y02.SG), Outperform, S$0.44 target, as frontrunner to secure strutting sub-contracts of large-scale infrastructure projects given leading market share eyes crane rental utilisation rate recovery supporting earnings growth for Tat Hong (T03.SG), Outperform, S$1.20 target. Yongnam +1.8% at S$0.28, Tat Hong untraded, last S$0.945. (matthew.allen@dowjones.com)
warrenbegger ( Date: 29-May-2011 15:37) Posted:
http://www.remisiers.org/cms_images/research/Research-29Nov-03Dec/sgconstruction_011211_all_DBSV.pdf
Accelerated building of new HDB flats will spur construction and basic materials demand.
Award of public transport project tenders will drive civil engineering works in near term.
Valuation of construction stocks remains depressed.
Our top picks are Tiong Seng, Pan-United Corp, Yongnam and OKP Holdings.
Pls dont listen to anyone, u must do your own research so if anything go wrong u dont complian, is your own money so invest carefully.
Above is a past link to DBSV research report on singapore listed construction sector company, it will take effect after Govt start to wake up.
warrenbegger ( Date: 27-May-2011 01:52) Posted:
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YONGNAM REGISTERS ANOTHER RECORD QUARTERLY NET PROFIT OF S$15.0 MILLION FOR 1QFY2011
Gross profit margin climbs to record 33.2%
“Going forward, we are looking at potential contracts locally which include both infrastructure projects like the MRT Downtown Line Phase 3 and the National Art Gallery as well as other commercial projects. At the same time, we are also actively pursuing infrastructure projects which include airport terminals and MRT projects in addition to commercial projects in Hong Kong, Malaysia, India, Abu Dhabi, Qatar, Oman and Saudi Arabia. The Group is also planning to tap new markets in Europe, targeting offshore structures. With the record profit achieved in 1QFY2011 providing a strong headstart and a healthy order book of S$410 million as at March 31, 2011, the Group is optimistic that it will continue to perform well in FY2011.
Contract win momentum continues
http://www.remisiers.org/cms_images/research/May16-May20/ynh200511-flashnote_buy_DBSV.pdf
Yongnam Holdings announced that it has secured another structural steel contract worth S$50m for the restoration works to the former Supreme Court building and the former City Hall building. The restored buildings will house the future National Art Gallery, and the new National Art Gallery will be the largest visual arts venue in Singapore when it opens its doors in 2014. This is the fourth contract announced by Yongnam YTD, and comes close on the heels of the Singapore Sports Hub contract worth S$75m secured earlier this month. These landmark contract wins further cement Yongnam's position as the leading structural steelworks specialist in Singapore. With this contract, we estimate new order wins YTD in FY11 should add up to approximately S$200m, including unannounced contracts. This translates to more than 50% of our full-year order win projections of around S$370m, and should enhance Yongnam's current orderbook to over S$500m. We remain bullish on the Company's prospects and maintain our BUY call with TP of S$0.38. More contract wins, especially from the Downtown Line 3 projects in the next 6-12 months, should provide further catalyst to the share price. |
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Hopefully may see it goes back to 30 cents...
PM Lee spoke about S$60 billion worth of MRT and road infrastructure contracts from 2011 to 2020. Current roll-out projects are the Downtown Line 1 to 3. Next in line are the North-South Line Expressway announced few months ago. Another 2 massive MRT projects are the Thomson and Eastern Region Line to be launched in the next year or so ?
If we look at the news these few weeks, we will notice that government will spare no efforts to boost the infrastructure projects and the residential projects (both HDB and private) in the thousands. Just take the Downtown Line project which costs about S$12 billion. Downtown Line 3 steel structural works to be awarded in 2nd half 2011, as mentioned by CEO Seow at AGM on 27 April 2011. Note that Downtown Line 3 consists of 16 stations almost as large as Downtown Line 1 (5 stations) and Downtown Line 2 (12 stations). Yongnam is likely to get about 50% of the temporary strutting steel works contracts! In short, the construction industry will stay buoyant these 3 years !
erm u realise singapore have over 50k homes waitin to be built???
Hulumas ( Date: 09-Jun-2011 18:06) Posted:
Singapore construction industries were peak before, now, they trended down slowly but surely!
warrenbegger ( Date: 08-Jun-2011 01:02) Posted:
| Ya. Both r good in each of their area : |
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Singapore construction industries were peak before, now, they trended down slowly but surely!
warrenbegger ( Date: 08-Jun-2011 01:02) Posted:
Ya. Both r good in each of their area :)
catalyst ( Date: 06-Jun-2011 20:32) Posted:
| Lian Beng looks a better prospect. |
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The main difference is that yongnam provides the steel structures for construction but lian beng does the actual construction of buildings....
Ya. Both r good in each of their area :)
catalyst ( Date: 06-Jun-2011 20:32) Posted:
Lian Beng looks a better prospect.
guangguang ( Date: 06-Jun-2011 17:35) Posted:
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Lian Beng looks a better prospect.guangguang ( Date: 06-Jun-2011 17:35) Posted:
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Yongnam is sleeping...
Yongnam's price will fly if the resistance of 30 cents is broken with high volume.... the 30 -30.5 cents resistance is however quite strong....
