DMG & Partners said Singapore-listed Malaysian offshore vessel builder Nam Cheong Ltd’s net profit this year is likely to exceed what it made in 2011, helped by strong order wins.
By 0137 GMT, Nam Cheong shares were up 2.2 percent at S$0.235. They have surged about 80 percent this year, compared with the Thomson Reuters Asia Pacific + Russia Industrial Goods Index’s 5 percent drop.
Nam Cheong said on Wednesday it won contracts of $52.1 million to build two platform supply vessels from customers based in West Africa.
DMG said the two vessels are expected to contribute at least 20 million ringgit to Nam Cheong’s profits, meaning it could post 105-100 million ringgit in profits, exceeding last year’s net profit of 93.2 million ringgit.
“Nam Cheong has run up a good 23 percent since our initiation, but we still see deep value in this company,” said DMG in a report, maintaining its ‘buy’ rating and a target price of S$0.29 on the firm.
Reporting by Charmian Kok in Singapore; email@example.com; Editing by Prateek Chatterjee