Says, sustained high gross margins in 3Q10 of 27.6% vs 23.8% in 3Q09 “continue to surprise.” Adds, orderbook strong at $451 million end-3Q; “order momentum reamined healthy in 3Q10, as the Group secured 3 contracts worth $84 million for the Downtown Line Stage 2 MRT projects in Singapore.”
Yongnam Holdings, the structural steel contractor and specialist civil engineering solutions provider, today reported a 20.6% jump in the group’s net profit to $13.7 million for the three months ended September 30, 2010 (3QFY2010), despite a marginal dip in revenue from $82.6 million in 3QFY2009 to $80.8 million in 3QFY2010.
This was due to higher contribution to the revenue mix from Specialist Civil Engineering which enjoyed better margins, coupled with improved margins achieved for Structural Steelworks projects. The Group achieved a gross profit of S$22.3 million in 3QFY2010, 13.5% higher than the gross profit of S$19.7 million in 3QFY2009.
Singapore shares may have a weak start on Wednesday after Wall Street closed flat overnight ahead of next week’s US elections and likely announcement of more stimulus by the Federal Reserve. Singapore’s benchmark Straits Times Index <.FTSTI> fell 0.62% on Tuesday to 3,162.51 points. Here are some stocks and factors to watch, say Thomson Reuters and Bloomberg:
Singapore’s Suntec Real Estate Investment Trust (SUNT.SI) may be in focus after it said on Tuesday it was buying a one-third interest in properties owned by two Hong Kong firms in the city-state’s downtown Marina Bay area for $1.5 billion.
Yongnam Holdings, the structural steel contractor and specialist civil engineering solutions provider, says the group has been awarded its third and fourth contracts for the MRT Downtown Line 2 (DTL 2) valued at $56.5 million.
Seow Soon Yong, Chief Executive Officer of Yongnam, says: “We are heartened by these contract wins as they serve as testaments to the confidence that our business partners have in us. We will leverage on our expertise and technical know-how in this area to further enhance our track record in the business.”
Shares of Singapore construction firm Yongnam Holdings <YNAM.SI> rose as much as 19% on Tuesday after two brokerages announced positive ratings on the stock.
At 9:44 a.m., Yongnam shares were trading at $0.31 on a volume of 67.6 million shares.
DBS Vickers starts Yongnam Holdings (Y02.SG) at Buy with $0.45 target price, pegged at 10x FY11 earnings, says Dow Jones.
DBS Vickers says despite construction group’s stronger-than-expected 1H10 results, stock continues to lag peers in terms of valuations.
“However, given the strong fundamentals — its market dominance in the steel strutting space in Singapore and record order books of $460 million — we believe the stock is poised to play catch up,” says the broker.
CIMB in an Oct 4 research report says: “Our recent visit suggests that order recognition for YNH would be lower than expected in 2H10. In addition, specialist civil engineering projects (SCE) are likely to form the bulk of order wins in 4Q10, rather than structural steel.
Singapore stocks may open higher on Wednesday after Wall Street rose overnight as investors bought shares in sectors that have outperformed during the month. Stocks and factors to watch. Singapore’s benchmark Straits Times Index <.FTSTI> was down 0.52% on Tuesday at 3,097.35 points.
Singapore Airlines (SIA SP): Air-traffic growth slowed for a second month in August, suggesting that a recovery in demand for flights may have peaked, the International Air Transport Association said yesterday. The gain in passenger traffic eased to 6.4% compared with a year earlier, down from 9.5% in July and a high of 11.9% in June. Singapore Air, the world’s second-biggest carrier by market value, slipped 1.2% to $16.28.
Yongnam Holdings, the structural steel contractor and specialist civil engineering solutions provider, says the group has been awarded its second contract for the MRT Downtown Line 2 (DTL 2) valued at $27.5 million.
The contract is part of the C921 contract package, one of several packages for the DTL 2.
Shares of Singapore construction firm Yongnam Holdings <YNAM.SI> rose as much as 6.3% today, as investors expected a bright outlook for the sector following government plans to invest more in infrastructure over the next few years.
By around 10:31 a.m., Yongnam shares were traded at $0.255 with over 20.6 million changing hands. The stock is up 4.2% to $0.250 with 28 million shares traded.
Singapore shares may see a weak start on Wednesday after persistent economic fears left US stocks little changed in choppy trade overnight. Singapore’s benchmark Straits Times Index <.FTSTI> fell 0.23% on Tuesday to 2,950.33 points. Here are some stocks and factors to watch:
M1 (MONE.SI) said it will launch its high-speed fibre broadband service with speeds of up to 1 gigabit per second and fixed voice service on Wednesday. It will also offer a free three-month trial of the fibre broadband service at 100Mbps to residential customers whose homes are ready for service.
Yongnam Holdings, the structural steel contractor and specialist civil engineering solutions provider, has been awarded its first contract for the MRT Downtown Line 2 (DTL 2) valued at $25 million.
The 16.6km long Downtown Line 2 comprises of one depot and 12 stations including three interchange stations. DTL 2 will link to the North-East Line, the North-South Line and the Circle line.
Yongnam says the contract comprises the constructiion of a Cut and Cover Tunnel and the Tan Kah Kee station.
Yongnam Holdings, the structural steel contractor and specialist civil engineering solutions provider, says the group has been awarded its sixth contract valued at $35.9 million for the Marina Coastal Expressway (MCE). With this contract win, the group has secured contracts worth a total of $363 million for the MCE.
Singapore’s benchmark Straits Times Index fell 0.44% to 2,855.21 points on Friday. The index is down 1.5% for the year. Financials such as DBS (DBSM.SI) are likely to face downward pressure from weaker US stocks on Friday amid a combination of weak earnings from retailers and concerns over the sustainability of European public debt. Here are some stocks to watch:
Shipping firm Neptune Orient Lines (NEPS.SI) is likely to be in focus on Monday after the firm reported a first quarter loss late on Friday, but said it expected a likely return to profit for the full year.
Fraser & Neave Holdings, the drinks maker and brewer, said second-quarter attributable profit was $170.3 million, compared with $90.2 million a year earlier. Revenue rose to S$1.37 billion from $1.13 billion, it said in a statement to the Singapore stock exchange today.
Yongnam Holdings, the structural steel contractor and specialist civil engineering solutions provider, says net profit climbed 35.5% to $13.8 million in the three months ended March 31, 2010 (1QFY2010) from $10.2 million in the previous corresponding quarter (1QFY2009).
Yongnam (Y02.SG) is up 3.5% at three-month high of 29.5 cents, extending yesterday’s 5.6% gain, as enlarged orderbook affirms civil engineering group’s earnings visibility for next few years, says Dow Jones.
Singapore shares closed higher on Tuesday with the blue-chip Straits Times Index up 7.13 points to 2,975.51. Gainers led losers 277 to 214. Last night, the Dow Jones industrial average eased 3.56 points, or 0.03%, to finish at 10,969.99. But the Standard & Poor’s 500 Index added 2.00 points, or 0.17%, to 1,189.44. Here are some stocks to watch:
Yongnam Holdings, the structural steel contractor and specialist civil engineering solutions provider, says the group has been awarded its fifth contract valued at $20.2 million for the Marina Coastal Expressway (MCE). With this contract win, the group has secured contracts worth a total of $326 million for the MCE.
Singapore shares closed higher on Monday with the blue-chip Straits Times Index up 25.36 points to 2,968.38. Gainers led losers 374 to 145. US stocks rose last night, pushing the Dow up near the 11,000 level, as signs of a turnaround in the US labour market bolstered hopes the economy is strengthening and the profit outlook is brightening. Here are some stocks and factors to watch according to The Edge Singapore:
Yongnam Holdings, the structural steel contractor and specialist civil engineering solutions provider, together with Geodesic Techniques Private Limited, an engineering design and build company in India, has won a sub-contract worth INR 235 Crores ($75.5 million) for the construction of a roof structure and composite steel columns for a new integrated terminal building for the Mumbai International Airport. The contract is expected to be completed by Feb 28, 2011.
