10 July 2007
Yongnam Holdings (YNH SP / YNAM.SI, OUTPERFORM - Maintained, S$0.53, Target: S$0.61)
Company update - Court decision soon; fundamentals going strong
by Lawrence Lye
Yongnam’s Springleaf Tower court case will come to an end with a court ruling on 11 Jul 07. The impact could be either neutral in the worst case or positive in the best case. In a favourable outcome, there could be a one-off boost to net profit of up to S$18m for FY07. Also, Yongnam’s bright prospects are supported by Singapore’s GDP growth momentum (2Q07 growth released today shows the construction industry expanding by an estimated 17.9% yoy, the fastest pace since 3Q97). Our target price of S$0.61 remains set at 20.0x CY08 earnings. Valuations are still reasonable against a projected 74.4% FY06-09 earnings CAGR for Yongnam. Maintain Outperform.
This is the website to the article :
http://www.gohdirect.com/NASApp/spaf/econtent/sg/Yongnam-Hldg-100707.pdf
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