Yongnam

Yongnam: Maybank-KE initiate coverage on Yongnam with a BUY rating and Street-high TP of $0.45. House note that with the expiry of 365m warrants in Dec 2012, think a major share price overhang has been removed and the stock is ready for a sharp re-rating. With a leading and defensible position in Southeast Asia for structural steel and strutting assets, believe Yongnam is a multi-bagger in the making as it rides on an unprecedented infrastructure boom in Asia. Yongnam recently announced that it has formed a consortium with Japan’s JGC and Singapore Changi Airport, bidding to build and own an international airport in Myanmar, and winning this project may open up further opportunities in the Golden Land.