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Singapore’s Big Winner for the Week: Yongnam Holdings Limited

Yongnam Holdings Limited (SGX: Y02) has gained 29% since last Friday to end at S$0.24 on Thursday. That’s a big jump, considering that the  SPDR STI ETF (SGX: ES3),  which tracks the Straits Times Index (SGX: ^STI), had increased only marginally at 0.4%.

Yongnam is involved in the design, fabrication, supply and erection of steel structural frames for long span aircraft hangars, high rise buildings, and industrial buildings, among others. Its most recent project was being involved in the construction of the Singapore Sports Hub.

Earlier this year, a group of companies, which Yongnam is part of it, received an invitation to negotiate with Myanmar’s civil aviation authority with regards to an airport in the country.

On Wednesday this week, Yongnam said that it had been selected, as part of the consortium, by Myanmar’s Department of Civil Aviation (DCA) to design, construct, operate and maintain Hanthawaddy International Airport and its facilities. The deal is worth US$1.4 billion and the consortium consists of Changi Airport Planners and Engineers Pte Ltd, JGC Corporation and Yongnam.

The agreement will be of a public-private partnership and will span a period of 30. The next step is for the consortium to finalise details and terms of the project with DCA.

The new airport will be about 80km from Yangon, the largest city and former capital of Myanmar, and will start operations at the end of 2019.

Separately, Yoma Strategic Holdings Ltd (SGX: Z59), which already has operations in the country, announced its latest quarter results on the same day. Net profit ballooned manifold to S$11 million while revenue grew 53% to S$41 million.

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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.