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Yongnam announced that it won 3 new contracts worth $63.8m. This will add to the company's current order book of $469m, making it $532.8m. These new wins are expected to have a positive effect on the company's numbers for 2012. Yongnam is a leader in its field and expectations are for more contract wins in the coming months.
Yongnam's net profit for 1Q 2012 came in lower compared to 1Q 2011 because of delays in projects starting up in 1Q 2012. 2011 was also a very strong year due to completion of higher margin projects. An improvement in 2H 2012 is expected, however.
"Nonetheless, we continue to win notable projects both in Singapore and overseas. As at March 31, 2012, our order books stood at a healthy S$469 million. We remain cautiously optimistic that the Group will perform reasonably well in FY2012 in view of a strong pipeline of projects that we are bidding for and the two delayed projects ramping up in the second half of the year." Seow Soon Yong, CEO
Gross profit margin: 29.3%
Net gearing: Lower at 0.28x
NAV/share: 24.13c
EPS: 0.91c
If we were to annualise the weaker quarterly EPS of 0.91c, we will get 3.64c. This would give us a PER of 6.45x with a share price of 23.5c.
Read announcement: here.
See 1Q 2012 results: here.
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