ValueBuddies.com : Value Investing Forum - Singapore, Hong Kong, U.S.

Delta Loyd, the Dutch fund that became substantial shareholder of Kingsmen, has done the same for Yongnam.

Yongnam is bidding for the right to design, construct, operate and maintain Yangon International Airport.
http://info.sgx.com/webcoranncatth.nsf/V...C0031311F/$file/YHL-News_Release-29_Apr_2013.pdf?openelement

For such a company, for it to be trading above it's NAV, does it seem risky?
Anyone got any views on this counter?

Will Yongnam holdings be affected as it is one of Alpine Bau local sub-contractors for the Downtown Line 2 projects?

Alpine had continued to provide assurances that it would complete its MRT contracts even after news of looming finanical troubles at Alpine Bau came out. In fact, as recent as mid-June this year, just days before Alpine filed for bankruptcy, it had given LTA the assurance and underlined its commitment to complete the station and tunnelling works. There had also been no signs of any slowing down of works on site, with works on the three stations in full swing.

(29-06-2013, 11:52 AM)Stockerman Wrote: [ -> ]Will Yongnam holdings be affected as it is one of Alpine Bau local sub-contractors for the Downtown Line 2 projects?

Alpine had continued to provide assurances that it would complete its MRT contracts even after news of looming finanical troubles at Alpine Bau came out. In fact, as recent as mid-June this year, just days before Alpine filed for bankruptcy, it had given LTA the assurance and underlined its commitment to complete the station and tunnelling works. There had also been no signs of any slowing down of works on site, with works on the three stations in full swing.

And that's why as an investor or potential investor, it is important to weigh news as it comes. Will the event affect the bottom line of the company? Dig for information that will answer your questions, don't buy/sell just because there is a sudden reaction (unless you have done your homework of course)

I remember Yongnam once upon a time went into financial difficulties because of something like that also. They did some work for developer and was promised an entire floor as payment, later that developer went bust and bank seized the whole project in Springleaf tower.

Quo Vardis ? repeat ?

http://en.wikipedia.org/wiki/Springleaf_Tower

Read about TTJ too, both of them are A1 structural supplier for MND.

For those vested and interested...

Yongnam consortium fails in Myanmar airport bid

Yongnam Holdings said that the consortium comprising itself, Changi Airport Planners and Engineers (CAPE) and JGC Corporation (JGC), was not successful in its tender bids to design, construct, operate and maintain Yangon International Airport (YIA) and Hanthawaddy International Airport (HIA) and their facilities for a 30-year concession period.

Instead, a consortium led by South Korea's Incheon International Airport Corporation had won the bid, South Korea’s Land Ministry said on Sunday.

http://www.theedgesingapore.com/the-dail...t-bid.html

Profit Guidance

The Board of Yongnam Holdings Limited (“Yongnam” or the “Company”) wishes to advise that, following a preliminary review of the unaudited financial results of the Company and its subsidiaries (the “Group”) for 3Q FY2013, the Group is expected to record an operating loss,
notwithstanding a healthy increase in revenue.

This is mainly due to two factors:-
- Cost overruns from three on-going projects which pared operating margin to new lows;
- A significant non-recurring one-off loss on disposal of some fixed assets that eroded the already thin bottom-line profit for the quarter.

Notwithstanding the above, the Group is expected to report a net profit for FY2013, though it is expected to be significantly lower than that of FY2012. Further details of the Group’s performance will be disclosed when it releases its 3Q 2013 financial statement on 11 November 2013

Did not expected that as it was supposed to be the market leader. Luckily I divested earlier but was tempted to enter when the Myanmar project failed. The butterfly in my stomach was always about Yongnam trying to do too much overseas ventures but gradually at the expense of eroding its footprint / market share in Singapore to competitors like TTJ..

I guess the 3 problematic projects which are suffering from cost-overrun could well include the National Art Gallery project (where Yongnam is involved in the base floors works)....
http://nationalartgallery.sg/buildings/flythrough/
and the Singapore Sports Hub project (where Yongnam is involved in the building the dome).....
http://www.sportshub.com.sg/sportshub2014/construction

The significant non-recurring one-off loss on disposal of some fixed assets could well be related to Yongnam's huge inventory of used steel strutting system components which are likely sold at scrap metal prices.