Yongnam   

Yongnam Holdings

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Building hope

OVERWEIGHT - Maintained Author(s):Colin TAN +65 62108685, Siew Khee LIM

■ We estimate S$9bn p.a. of public civil engineering contracts could be awarded in Singapore in 2018-2021F, leading to construction sector recovery. ■ North-South Corridor is a key project, in our view. ■ In the private sector, we are seeing a multiplier effect from the en bloc deals, which we estimate could add S$1bn in construction value in 2018F. ■ Signs of easing competitive pressure could indicate better profitability for construction firms ahead. Maintain sector Overweight. ■ Yongnam is our top pick in the sector. Other key players of sizeable market cap highlighted in this report are Wee Hur, Lum Chang, Pan-United and Koh Brothers.

Major public infrastructure projects to set the pace for growth The Building and Construction Authority (BCA) projects the value of public sector construction in Singapore to amount to between S$18bn and S$23bn p.a. in 2018-2021F, of which 50% is expected to comprise civil engineering projects. We estimate this translates into at least S$9bn worth of civil engineering contracts, exceeding the value awarded in 2017. Upcoming tenders in 2018F include the bulk of North-South Corridor (NSC) project (worth c.S$13bn), which would support public sector construction demand, in our view. Private sector construction demand could begin to strengthen In our view, a good portion of the demand would come from awarded en bloc sales, of which several projects could be launched this year, potentially yielding c.S$1bn in construction value. Furthermore, the government has said it aims to keep the total supply of private residential units for 1H18F at a similar level to the supply of units in 2H17. This could lead to growth in construction demand from the private residential space. Tender price index could rebound with higher demand The tender price index seems to have found a floor at 96.0-97.0 in 9M17, which we think indicates that competitive pressure for construction project bids is starting to abate. BCA revealed a slight improvement in overall business confidence for 2H17 among contractors and consultants, although there is still bearish sentiment on project profitability amid keen competition. What to expect beyond 2018F? We project future redevelopment of the Jurong Lake District could lead to over S$3.6bn worth of construction demand, based on comparison to the construction boom in 2007 fueled by developments in the Marina Bay area. Mega infrastructure projects in the pipeline include Jurong Regional Line, Cross Island Line and various developments for Changi Airport Terminal 5. We estimate about 1,800ha of land will be freed up for redevelopment post-relocation of existing port terminals and Paya Lebar Airbase in 2030F onwards. Who' s who on the value chain? Yongnam is our sector top pick in view of catalysts from major order wins for mega infrastructure projects in Singapore. In addition, we highlight five companies that are of sizeable market cap (> S$100m) with a similar track record. These are Wee Hur and Lum Chang (builders), Koh Brothers (specialist civil engineering company currently bidding for major infrastructure contracts) and Pan-United (concrete supplier).

 

clever!
any ideas what the big married deal was about? Was it simply a trap? TIA.

machidrain      ( Date: 19-Dec-2017 16:41) Posted: loss making company, shorted at 0.325

 

Highly recommended by cimb.

50 coming

 

loss making company, shorted at 0.325

 

Going from strength to strength

 

Wow, high volume today, with one married deal of 10,000 shares at $0.305.
Last done at $0.32.

Any news ? Big contracts to be announced ?

 

Wah, this one is really moving vert slowly

 

Crawling up quietly these two days. 

 

More projects than usual will propel this counter to greater heights

 

Yongnam does not do buidling. 

 

lorann      ( Date: 12-Dec-2017 10:43) Posted: Next year will be a construction year with the many successful en bloc happening this year

 

Next year will be a construction year with the many successful en bloc happening this year

 

Still a laggard but waiting for its next move. 

 

Breakdown now, time to pick up some

 

most hardworking poster in SJ

SgYuan      ( Date: 26-Oct-2017 14:40) Posted: EW1:205-w1:240-w2:225-w3:280-w4:250-w5:ext ew:310 abc 255-295-260 abc 285-265-280 end at 270 EW main: 205-w1:ext ew EW1:310-w2:255-w3:355?-w4?-w5? abc Simplify: By theory w3 projection is 161.8%, w3:355? (tgt=255+(310-205)*161.8%=425)-w4-w5 abc But i don' t think it can one shot move to 425, so w3 should be a ext EW If w3 is a ext EW, and  - w1 end at 355?, w2 drop typical 61.8%, w3 projection is 161.8%, w4 drop 38.2% w3:ext  EW  270-w1:355?-w2:tgt=drop 61.8%=300-w3:tgt 435-w4:tgt=380-w5:tgt=460 abc near w4 380 Simplied, you will see the waves below: w3:ext  EW 270-w1:355-w2:300-w3:435-w4:380-w5:460 abc near 380 Now should be correcting to w2 already ... So final tgt range is 425 to 460. But you need to ride the waves. SgYuan      ( Date: 26-Oct-2017 08:26) Posted: Px 30.5 Great power up. Elliott wave: extended wave 3. W3 ext EW start 270-w1:315? Accumulate 30.5 and below.

 

What' s the outcome of their Myammar' s big projects? Going ahead?

 

Wow 53? Still a long way to go. Sell others to buy this now

SmallSmall      ( Date: 26-Oct-2017 12:49) Posted: CIMB is recommending to " add" Yongnam Holdings upon initial coverage of the steel supplier, with a target price of 53 Singapore cents.

 

EW1:205-w1:240-w2:225-w3:280-w4:250-w5:ext ew:310 abc 255-295-260 abc 285-265-280 end at 270
EW main: 205-w1:ext ew EW1:310-w2:255-w3:355?-w4?-w5? abc
Simplify:
By theory w3 projection is 161.8%,
w3:355? (tgt=255+(310-205)*161.8%=425)-w4-w5 abc

But i don' t think it can one shot move to 425, so w3 should be a ext EW
If w3 is a ext EW, and 
- w1 end at 355?, w2 drop typical 61.8%, w3 projection is 161.8%, w4 drop 38.2%
w3:ext  EW  270-w1:355?-w2:tgt=drop 61.8%=300-w3:tgt 435-w4:tgt=380-w5:tgt=460 abc near w4 380

Simplied, you will see the waves below:
w3:ext  EW 270-w1:355-w2:300-w3:435-w4:380-w5:460 abc near 380
Now should be correcting to w2 already ...

So final tgt range is 425 to 460.
But you need to ride the waves.

SgYuan      ( Date: 26-Oct-2017 08:26) Posted: Px 30.5 Great power up. Elliott wave: extended wave 3. W3 ext EW start 270-w1:315? Accumulate 30.5 and below.

 

Ronald k make before up..now still have meat.

 

Ronald k make before up..now still have meat.

 

CIMB is recommending to " add" Yongnam Holdings upon initial coverage of the steel supplier, with a target price of 53 Singapore cents.