Yongnam

[CY09]

I am surprised Yongnam is still alive till now. Its construction projects have continued to be negative margins throughout the last 6 years.

Their tender team has always been underbidding for projects and yet it seems the same people are on the job. On the contrary, companies like TTJ have been bidding with sufficient margin of safety and are profitable; however is facing a dwindling orderbook.

[CY09]

Yongnam's Financial results improved a lower loss reported. This is due to less revenue recognized.

Cashflow wise, the company is still burning cash in its operations and was saved by a round of share placement earlier in the year

Wonder how much dilution will shareholders need. Its a poorly managed company who has the largest structural steel business in Singapore but looks likely to collapse

https://links.sgx.com/FileOpen/YHL_UFS_3...eID=678798

[CY09]

https://links.sgx.com/FileOpen/YHL_Lette...eID=739572

One of the largest construction company has suspended the trading of its shares. All along, the company has been tendering for projects with little margin, resulting in constant losses.

My view is that Yongnam has been under bidding for projects constantly and should not have done so. To be honest, I hope the company goes under and folds as a lesson to others that unprofitable companies should not be constantly allowed to be rolled over by its financiers. A few government projects will be affected but I think it is for the best given how unsustainable the company has been operating and outbidding competitors

[Shiyi]

https://links.sgx.com/FileOpen/YHL_Lette...eID=739572

One of the largest construction company has suspended the trading of its shares. All along, the company has been tendering for projects with little margin, resulting in constant losses.

My view is that Yongnam has been under bidding for projects constantly and should not have done so. To be honest, I hope the company goes under and folds as a lesson to others that unprofitable companies should not be constantly allowed to be rolled over by its financiers. A few government projects will be affected but I think it is for the best given how unsustainable the company has been operating and outbidding competitors

Same goes for Tiong Seng. Construction is a cut-throat business. Many companies bid low to keep workers occupied during the down time.

[CY09]

We had one exception, I think it was TTJ holdings. The downside was that TTJ did not win many projects in Government tenders. If one follows the government projects, Yongnam was known to have won many projects and made astounding losses on them; one well known example was the Singapore Stadium project. I never understood how Yongnam's tendering team never learnt from their mistakes and keep bidding with huge project losses

Do note the construction industry is made up of a large number foreign workers, so it is easy to just cut and send them back.

[fallscushion]

It is also a lesson (not learnt) by the awardee companies.
The assesment of bidder financial is quite lacking and perhaps not sufficiently taken into consideration in the bidding process.