Wednesday, March 7, 2012

Yongnam Holdings rated 'outperform' by CIMB

CIMB in a Feb 29 research report says: "FY2011 profit is in line with consensus (103%) and our numbers (102%). FY2011 DPS of 1 cent was a pleasant surprise (0.65 cent in FY2010). Earnings visibility remains solid, backed by an order book of $462 million.

"About 60% of the projects will be delivered in FY2012, with Structural Steelwork taking 39% of the order book, and 61% coming from higher-margin specialist civil engineering.

"Though we are convinced that there is a healthy pipeline of potential projects (worth $1.6 billion in FY2012) in Singapore as well as the region, we no longer think a premium to the 6x CY13 P/E (3-year forward mean) is justifiable. Target price of 33 cents. MAINTAIN OUTPERFORM.

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