Yongnam

[orangetea]

Part 2
Delta Lloyd Azië Deelnemingen Fonds

Source
http://www.deltalloydassetmanagement.nl/...gen-fonds/

Half Year 2012 Report
Number of shares 35,000,000
Market value EUR 5,007,000 as at 30 Jun 2012
Weight per share in folio 5.28%

Translated from page 105

Yongnam Holdings is a Singaporean company . The company is the regional leader field of shoring systems and steel constructions . Yongnam builds strut systems mainly used for underground infrastructure projects such as the construction of underground and
lines . Since its founding in 1971 , Yongnam has continuously focused on delivering excellence . With strut systems Yongnam contributed to 90% of the last five years Metro and rail projects in Singapore . The company also supplies a growing contribution to projects in Hong Kong and Malaysia . Yongnam sells his expertise in the field of
steel structures for leading developers . The company was involved
in the construction of several high-profile projects such as Changi Airport , Marina Bay Sands Hotel and the Singapore Capital Tower . In Japan and several European countries, 60 % are the buildings of steel structures for the rapid construction , the superior material properties and the good design . Steel is more expensive than traditional
building materials , but given the increasing prosperity in Asia , the demand for steel structures gradually increase. Yongnam is therefore undervalued firm. The market value of the stutsystementak is much higher than the book value of those assets . In addition, a healthy Yongnam order book and the company recently raised its dividend .

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Half Year 2013 Report
Translated from Page 66

Beleggingsbeleid (Investment)

Yongnam ( 48 % total return in local currency ) was the largest positive contributor to the return. As the largest supplier of shoring systems in Asia, the company has once again managed contracts win underground tunnel projects throughout the region . To further diversify the
revenue base and continuous income also brings the company now together with partners joint bids from projects for the construction and operation of infrastructure.

Bijlage A (Annex A)
Number of shares 68,704,000
Market value EUR 14,378,000 as at 30 Jun 2013
Weight per share in folio 8.50%


No price available - See attachment for figuring out anyone?

[orangetea]

YONGNAM CONSORTIUM INVITED TO NEGOTIATE FOR HANTHAWADDY INTERNATIONAL AIRPORT CONCESSION

Further to earlier related announcements dated 29 May 2013 and 11 August 2013, the Board of Yongnam Holdings Limited (“Yongnam” or the “Company”) wishes to update that the consortium comprising Yongnam, Changi Airport Planners and Engineers (“CAPE”) and JGC Corporation (“JGC”) (together, the "Consortium"), has received an invitation from the Department of Civil Aviation ("DCA"), Myanmar to enter into negotiation on the design, construction, operation and maintenance of Hanthawaddy International Airport (“HIA”) and its facilities on the basis of a public-private partnership agreement for a 30-year concession period.
The Consortium had previously submitted a proposal on 8 February 2013 to the DCA for the aforementioned project. On 10 August 2013, the Consortium was named as a back- up tenderer for HIA by the Tender Selection Committee of the Myanmar Ministry of Transport.
The Company will provide updates as and when there are further developments to the negotiation with the Myanmar DCA.
The Board cautions that while the Company hopes to have a successful conclusion to the negotiation with the Myanmar DCA, this invitation to negotiate with the Myanmar DCA may or may not conclude successfully. Hence, shareholders should exercise caution when dealing in Yongnam shares.

[dydx]

Having taken a look at Yongnam's latest (as at 30Sep13) B/S…..
http://infopub.sgx.com/FileOpen/YHL-Unau...eID=263566
my own sense is that presently Yongnam does not have the necessary financial resources/flexibility to undertake a meaningful long-term investment in the Hanthawaddy International Airport (“HIA”) project in Myanmar. The latest B/S shows a total gross debts position of $173.8m - vs. an equity position of $327.6m - which financed big portions of Yongnam's huge PPE ($356.9m), WIP ($130.3m) and trade debtors ($40.2m); and a relatively small cash/bank balances total of $16.3m.

If Yongnam gets to do work and invest in the HIA, it is conceivable that the company would need to raise quite a bit of new capital, either by way of a rights issue or placement of new shares.

[mrEngineer]

I am confused.. I thought Yongnam lost e bid initially to the Koreans and now there is a new invitation again? Is it e same project?

[Greenrookie]

I am confused.. I thought Yongnam lost e bid initially to the Koreans and now there is a new invitation again? Is it e same project?

It's the same project, apparently, they have some problems concluding the deal within the Koreans, and yongnam is invited as back-up tender again.

MHO, is not the same anymore although its the same project.

1) it show the inherent risk of doing business with militants learning to be businessman, and why is the Koreans backing out?

2) it is a pressure tactic on Koreans to yield something.

In short, I doubt it can be better than the initial bid.

[orangetea]

I exited this company due to the debt level and now this project.
I will wait and observe.

[dydx]

FY13 (ended 31Dec13) full-year result just out…..
http://infopub.sgx.com/FileOpen/YHL-Unau...eID=276447 [result announcement]
http://infopub.sgx.com/FileOpen/YHL-News...eID=276448 [press release]
http://infopub.sgx.com/FileOpen/YHL-FY20...eID=276449 [presentation slides]

I suppose we can summarise FY13 for Yongnam as a year of (1) doing more business but making much less or little profits, because of problems in the big and complicated contracts signed and undertaken, as well as over-investment in steel materials in the past (as evidenced by the $7.1m loss taken on disposal of PPE); and (2) further increase in borrowings which totalled $182.6m as at 31Dec13 (vs. $119.4m as at 31Dec12). The $14.6m aftertax loss in 2H is quite alarming.

The strange thing is that Yongnam still wants to keep the payment of a Final dividend at $0.006/share (reduced from $0.01/share in FY12) which will amount to $7.6m - i.e. to keep shareholders happy, Yongnam's management and BOD are willing to load the company with even more debts! It appears to me a rights issue in 2014 will be a high possibility especially if Yongnam goes ahead to invest in the Hanthawaddy International Airport project in Myanmar.

Share price wise, Yongnam (share code: Y02) has started to under-perform the STI since Nov13……
http://sg.finance.yahoo.com/q/bc?s=Y02.S...I%2C%5ESTI
On the contrary, smaller archrival TTJ (share code: K1Q) has consistently out-performed Yongnam for 2 years now (since Mar12) and by some 80% todate.

[dydx]

As iron ore prices have reportedly plunged by some 34% so far this year,…..
http://www.valuebuddies.com/showthread.p...n=lastpost
what's going to happen to Yongnam's over-sized holding of steel struts (beams and columns) (part of PPE) which amounted to $309.3m in historical cost and $248.6m in BV as at 31Dec13. It is likely that a provision will have to be made, and if made this could cause a big dent to Yangnam's latest 31Mar14's equity position of $314.1m.

[sgd]

regarding iron ore prices, back a few years ago when commodity prices were having a bull run and steel prices were high

I remember the ex-ceo comment something like raw materials prices were quoted in usd it hurt their earnings because raw materials were becoming expensive.

So now if iron ore prices plunge steel prices should become cheaper and if they are able to get enough projects to sustain wouldn't they be alright?

(not vested)

[corydorus]

If the mentioned is true, Not so if they have already bought at high price and high inventory.