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Yongnam Holdings Q1 net loss widens to S$4.6m

YONGNAM Holdings' net loss for its first quarter worsened to S$4.6 million, from a net loss of S$1.5 million in the previous year, the group said in a Singapore Exchange filing on Tuesday evening.

Loss per share worsened to 0.88 Singapore cents, from a loss per share of 0.31 Singapore cents in the previous year.

For the three months ended March 31, revenue dropped 40.9 per cent to S$54.1 million from the previous year.

This was mainly due to lower revenue contribution from its structural steelwork business which fell 52.4 per cent to S$32.2 million due to the substantial completion of Senoko Food Hub and Jewel Changi Airport projects at the end of FY2017. Outram Community Hospital and Evonik methionine plant in Jurong Island helped revenue for the structural steelworks segment, it said.

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"Gross profit margin is depressed by the continued low level of strutting and other activities in Singapore and Hong Kong, resulting in overhead costs not being fully absorbed," Yongnam said.

Yongnam said that it is awaiting results for bids that it submitted for large public sector infrastructure projects here this year, such as major contracts for the North-South Corridor.

It is pursuing S$1.1 billion worth of new infrastructure and commercial projects in Singapore, Hong Kong, Australia and the Middle East. Its order book stood at S$142 million as at March 31, 2018.

"The group continues to invest time and resources in bidding for potential projects in Singapore and regionally," said Yongnam. "Most of the potential projects, if awarded, are expected to make an impact only from the later part of 2018."

Yongnam shares ended unchanged at S$0.31 on Tuesday.