Potential New Contract - YongNam
A forwarded sent to my clts
Market has not been responding very well for the past few weeks. I am more negative biased in the market at the moment due to Euro woes. However, YONGNAM has caught my attention recently.
First of all, some background information about YongNam : Yongnam Holdings Limited is a leading Singapore based multi-discipline engineering and construction services provider with more than 30 years experience. Its key business areas include that of structural steelworks (engineering coordination, detailing, full service fabrication and erection of steel structures), specialist civil engineering and mechanical engineering. Yongnam currently has regional operations in Singapore, Malaysia, Thailand and Hong Kong. Yongnam past projects will also include MBS'sSkypark, ArtScience Museum at
the Marina Bay Sands Integrated Resort. Yongnam was awarded numerous contracts for developing MRT lines as well.
Below is one of them on 2010.
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Potential New Contracts?
On 1st September, it was announced in news that the Thomson Line will have 22 stations and will be opened in 3 stages from 2019, as mentioned by our transport minister. http://motoring.asiaone.com/
While there is no news of contracts been awarded yet, investors has already buy on speculation the last few days. See chart below.
From a technical analysis point of view
As expected, Yongnam's trading activity was picking up the last few days. Low was at about 23 cents and high was around 24 cents. At the moment, yongnam is trading heavily above 22.5 cents with huge amount of buyers. However, immediate resistance will be at 24 cents at the moment which is its recent high. Risk to reward ratio is very good in my opinon if entry price is around 22 cents.
Fundamentally...
Sector comparism...
Sector wise, Yongnam has a lower PE ratio as compared to its peers, potential undervalue play?
Post is pretty much speculative on the pontetial contract gain.
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