Yongnam

[cyclone]

Profit Warning for the Financial Year ended 31 December 2016

The Board of Directors of Yongnam Holdings Limited (“Yongnam” or the “Company”) wishes to advise shareholders that the Company is expected to report a net loss for the three months ended 31 December 2016 (“4Q2016”) and full financial year ended 31 December 2016 (“FY2016”). The loss is mainly attributable to cost-overrun for the Senoko Food Hub project and provisions made in anticipation of lower negotiated awards in variation orders for certain projects.

Notwithstanding the loss in FY2016, the Company has a strong order book of $302 million as at 30 September 2016, and is in active pursuit of $1.5 billion worth of new infrastructure and commercial projects in Singapore, Hong Kong, Malaysia and the Middle East.

This profit guidance is based on a preliminary review of the unaudited consolidated management accounts of the Company for FY2016. Further details of the Company’s financial performance will be disclosed when the Company finalises and announces its FY2016 unaudited financial results on 28 February 2017.

[slowandsteady]

https://www.bloomberg.com/news/articles/...astructure

Increased spending on infrastructure, which is good news for Yongnam with a regional footprint and long track record. Yes they were over-aggressive in the past few years and underbid on projects, but when the pie grows again margins should revert. In my industry (O&G), those who continue supporting the customer during bad times and "suffer together" tend to get rewarded by the very same customers when things pick up. It's just the way people work in a cyclical industry. Refusing to support the customers during bad times may preserve margins but is sometimes viewed as short-term-ism by industry insiders. Anyway, looks like it's time for things to pick up at Yongnam.

[dydx]

https://www.bloomberg.com/news/articles/...astructure

Increased spending on infrastructure, which is good news for Yongnam with a regional footprint and long track record. Yes they were over-aggressive in the past few years and underbid on projects, but when the pie grows again margins should revert. In my industry (O&G), those who continue supporting the customer during bad times and "suffer together" tend to get rewarded by the very same customers when things pick up. It's just the way people work in a cyclical industry. Refusing to support the customers during bad times may preserve margins but is sometimes viewed as short-term-ism by industry insiders. Anyway, looks like it's time for things to pick up at Yongnam.

Just like in stock investing, those in business or running listed companies ought to try their best to make money in every business deal or in a steady fashion - just like what smaller archrival TTJ has been doing since listed on SGX in 2010 - instead of aggressively going for big projects or market share, or blindly pursuing growth to feed their corporate or personal egos, as this is one sure way to destroy shareholders' wealth. Unfortunately, this simple truth has been proven again and again in Yongnam.

[ksir]

https://www.bloomberg.com/news/articles/...astructure

Increased spending on infrastructure, which is good news for Yongnam with a regional footprint and long track record. Yes they were over-aggressive in the past few years and underbid on projects, but when the pie grows again margins should revert. In my industry (O&G), those who continue supporting the customer during bad times and "suffer together" tend to get rewarded by the very same customers when things pick up. It's just the way people work in a cyclical industry. Refusing to support the customers during bad times may preserve margins but is sometimes viewed as short-term-ism by industry insiders. Anyway, looks like it's time for things to pick up at Yongnam.

Just like in stock investing, those in business or running listed companies ought to try their best to make money in every business deal or in a steady fashion - just like what smaller archrival TTJ has been doing since listed on SGX in 2010 - instead of aggressively going for big projects or market share, or blindly pursuing growth to feed their corporate or personal egos, as this is one sure way to destroy shareholders' wealth. Unfortunately, this simple truth has been proven again and again in Yongnam.

Generally for projects in Government or Gov related companies, mostly have to be tendered out.
In the process of tender, there isn't (or rather, shouldn't be) any picking based on past relationship.
If you bid (or bet) too low last time and you had cost overran, should I care? NO.

Any tender result NOT picking the lowest price have to be justified (which civil servants most likely wouldn't pick up the trouble).
Especially when the projects are not unique and a lot of companies can do just as well.

Generally if I was the CEO tendering out the project, I'd rather pick company with strong Balance Sheet to ensure the project continuity.
Yongnam's BS definitely doesn't give such confidence. 

However, when the price is too low enough, there could be value.
HOW LOW? I do not know (yet).

<watching and probably will explore more when the BS improved>

[YMPL]

Yongnam is a strong contrast with TTJ in term of margin, fixed cost, and inventory control

Yongnam sinks into 1Q net loss of $1.5 mil on lower margins, overheads

http://www.theedgemarkets.com.sg/yongnam...-overheads

[cyclone]

3 consecutive years' losses.
As the company's latest 6-month average daily market capitalisation = S$96.5618 million, not less than S$40 million, it is not placed on watch-list.

[slowandsteady]

Myanmar airport project should start soon, wonder if that's the reason for the recent buying interest?

http://www.mmtimes.com/index.php/busines...-2018.html

[cyclone]

Yongnam Secures 4 Singapore-based Contracts Worth S$23.0 Million

Highlights :
1. Two structural steelwork contracts for the construction of an industrial development in Singapore
2. Two contracts for the supply, fabrication and delivery of structural steel kingposts for a new 12-storey block for the Singapore General Hospital and a mixed development project in Bidadari respectively

More details in http://infopub.sgx.com/FileOpen/YHL-News...eID=515838

[cyclone]

Yongnam Secures Five Contracts Worth S$120.8 Million in Singapore, Hong Kong and India

Highlights :
* Three specialist civil engineering contracts for infrastructure developments in Singapore and Hong Kong
* Two structural steelwork contracts for Kempegowda International Airport Terminal 2 in Bangalore, India and a factory in Singapore
* Contracts will commence in the second half of 2019 and be completed progressively over a period of 36 months

These contracts are expected to have a positive impact on the Group’s financial performance for the year ending December 31, 2019.

More details in https://links.sgx.com/FileOpen/YHL-News_...eID=559970

[edragon]

https://www.businesstimes.com.sg/energy-...ncertainty

YONGNAM Holdings gave notice of three consecutive years of losses in a regulatory filing on Wednesday, while its independent auditor also noted material uncertainty over the steel fabricator's ability to continue as a going concern.