SINGAPORE (May 15): Yongnam Holdings, the structural steel contractor and specialist civil engineering solutions provider, sank deeper into 1Q net loss of $6.9 million from the net loss of $4.8 million a year ago, in line with lower overall sales and business activities due to the substantial completion of projects in end-FY18.
Revenue fell 5.5% to $51.1 million from a year ago. Sales from structural steelworks segment declined 21.5% to $25.3 million mainly due to the substantial completion of Outram Community Hospital and Evonik methionine plant on Jurong Island at the end of FY18.
In 1Q19, key contributors to structural steelwork’s sales comprised the JTC Logistics Hub, JTC North Coast Development and a new industrial development in Singapore.
Revenue contribution from the specialist civil engineering segment increased 6.5% to $20.3 million in 1Q19, supported by higher contribution from infrastructural projects in Australia’s State of Victoria as well as contributions from the ongoing MRT Thomson Line projects.
Gross profit margin was impacted by the continued low level of strutting and other activities in Singapore and Hong Kong, which resulted in overhead costs not being fully absorbed.
As at March 31, the group’s net gearing is 0.72 times, compared to 0.51 times as at Dec 31, due to the adoption of new SFRS (I) 16 lease accounting standard which brought the off-balance sheet operating leases to the balance sheets.
Net asset value per share was 46.96 cents as at March 31, 2019, compared to 48.57 cents as at December 31, 2018.
Seow Soon Yong, CEO of Yongnam, says, “We aim to continue to strengthen our order book, which stood at S$327 million as at March 31, 2019, which is substantially higher compared to a year ago...Currently, we are actively pursuing a number of infrastructure projects in Singapore, Hong Kong, Australia, the Philippines and India. In particular, we have submitted bids for various major contracts for the Changi Airport Terminal 5 project as well as the North-South Corridor.”
Shares in Yongnam closed 0.2 cent higher at 16 cents on Wednesday.
