Singapore “Flyer” of the Week: Yongnam Holdings

YongNamLogoStructural steel contractor and specialist civil engineering solutions provider, Yongnam Holdings Limited (SGX: Y02), rose 6.5% for the week to close at $0.245 on Thursday.

The company provides engineering coordination, detailing and full-service fabrication & erection of structural steel with operations in Singapore, Malaysia, Thailand and Hong Kong. It has been involved in constructing long span aircraft hangars, high rise buildings, commercial and industrial buildings, as well as infrastructure related developments.

On 4th February 2014, the firm announced that a consortium comprising of itself, Changi Airport Planners and Engineers and JGC Corporation, has received an invitation from the Myanmar Department of Civil Aviation (DCA) to enter into negotiation on the design, construction, operation and maintenance of Hanthawaddy International Airport and its facilities. It will be on the basis of a public-private partnership agreement for a 30-year concession period. Yongnam said that this invitation to negotiate with the Myanmar DCA may or may not conclude successfully.

In fact, in August last year, the consortium had not been successful in its tender bids to design, construct, operate and maintain Yangon International Airport and Hanthawaddy International Airport and their facilities. The proposal was submitted in February 2013.

The Tender Selection Committee of the Myanmar Ministry of Transport had awarded the contracts to two other consortiums, one of them being South Korea’s Incheon International Airport Corporation. However, the consortium involving Yongnam was named as back-up tenderers for both airports.

To be located 48 miles northeast of Yangon, Hanthawaddy International Airport is projected to have a yearly passenger capacity of around 12 million people.

The historical PE ratio of the firm is at 11 and the dividend yield stands at 4%.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.