Stock Name: Yongnam
Company Name: YONGNAM HOLDINGS LIMITED
CIMB in a June 14 research report says: "YNH's contract wins had picked up strongly in 2Q11, with the group securing more than $190 million worth of contracts or 40% of our target for this year.
"Coupled with profit margins which had been sustained over the four quarters of 2010 (with a positive surprise in 1Q11), we believe YNH is on track to meet our FY2011 earnings target. No change to our EPS estimates or target price of 40 cents, still based on 8x CY12 P/E, a 20% discount to its mid-cycle multiples.
"We also like YNH's undemanding valuations against peers, at 5.2x CY12 P/E vs. the peer average of 7.6x. We expect stock catalysts from contract wins for projects such as the MRT Downtown Line and structural steelwork projects in the Middle East. MAINTAIN OUTPERFORM."
Company Name: YONGNAM HOLDINGS LIMITED
| Research House: CIMB | Price Call: BUY | Target Price: 0.40 |
CIMB in a June 14 research report says: "YNH's contract wins had picked up strongly in 2Q11, with the group securing more than $190 million worth of contracts or 40% of our target for this year.
"Coupled with profit margins which had been sustained over the four quarters of 2010 (with a positive surprise in 1Q11), we believe YNH is on track to meet our FY2011 earnings target. No change to our EPS estimates or target price of 40 cents, still based on 8x CY12 P/E, a 20% discount to its mid-cycle multiples.
"We also like YNH's undemanding valuations against peers, at 5.2x CY12 P/E vs. the peer average of 7.6x. We expect stock catalysts from contract wins for projects such as the MRT Downtown Line and structural steelwork projects in the Middle East. MAINTAIN OUTPERFORM."
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