Monday, August 13, 2012

Nam Cheong

Nam Cheong: Announced 2Q 12 results at the lower end of bullish estimates, although grp’s overall fundamentals still remains intact. Rev at $149.8m, +14% yoy and -27.1% qoq, while net profit at $22.5m, +849% and -32.2% qoq. Gross margins at 19.8% vs 9.7% yoy. Strong yoy rev was due to the progressive recognition of rev derived from sales of PSV in 2011 which made up a significant portion of increase in shipbuilding revenue for Nam Cheong. In addition, Nam Cheong also saw its recurring income stream boosted by the expansion of its chartering fleet. Going forward, grp remains positive on prospects, noting that the world’s demand for oil will continue unabated and rising energy consumption in Asia will drive energy producing countries including Msia to ramp up their investments in offshore exploration and production activities. Grps fundamentals remain strong with orderbook at RM809m, underpinning earnings visibility till 2014, while net gearing at 0.42x is at its lowest since listing.

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