Yongnam Q3 Results

Yongnam Holdings, the structural steel contractor and specialist civil engineering solutions provider, today reported a 68.2% surge in profit after tax to $11.2 million in the three months ended September 30, 2009 (3QFY2009), from $6.7 million recorded in the previous corresponding period (3QFY2008). The stronger bottomline was achieved despite a 14.2% decline in the group’s topline from $96.3 million in 3QFY2008 to $82.6 million in 3QFY2009.

On a cumulative basis, the group recorded increases in both its top and bottomlines. Profit after tax jumped 58.7% from $20.2 million in the nine months ended September 30, 2008 (9MFY2008) to $32.0 million in the nine months ended September 30, 2009 (9MFY2009). Revenue increased 15.6% from $230.0 million in 9MFY2008 to $265.8 million in 9MFY2009, largely due to the many ongoing mega infrastructural projects the group is working on.

Yongnam says Structural Steelworks maintained its position as the key contributor to the group’s total revenue, albeit a contraction in revenue for this quarter. Revenue for this division fell 17.7% from $67.4 million in 3QFY2008 to $55.5 million in 3QFY2009, as the increased activities at the Marina Bay Sands Integrated Resort were insufficient to offset the substantial completion of the Dubai Metro Rail and the New Delhi Airport projects. This division contributed 67.2% of the group’s total revenue in 3QFY2009.

The group’s Specialist Civil Engineering recorded a marginal 6.0% decrease in revenue from $28.8 million in 3QFY2008 to $27 million in 3QFY2009. This was mainly due to the substantial completion of the MBS IR projects, offset by the commencement of works at the Marina Coastal Expressway (MCE) C485 project – the group’s single largest contract-to-date valued at $185.5 million. The remaining 32.8% of the group’s total revenue in 3QFY2009 was derived from this division.

As at September 30, 2009, Yongnam says its group’s order book stood at $540 million, a record- breaking figure surpassing the $517 million achieved in end March 2009. Supported by a strong order book, it is optimistic that it will continue to perform well in the next 12 months.