Nam Cheong

Nam Cheong: Weaker set of results on a yoy basis, mainly due to the timing of the percentage of rev recognition of vessels sold, although strong fundamentals still remain largely intact. Rev at RM141.9m, -44% yoy and -5.2% qoq, while net profit at RM31.6m, -33% yoy and +40.4% qoq. But Overall gross margins improved further at 27% vs 24% yoy. For 9M12, grp reported a 31% jump in net profit to RM87m, note that since March this year, the Group has maintained a strong order momentum, announcing a series of new contract wins totaling 18 vessels to date. Separately, grp announced that it has secured orders for 4 AHTS worth approx. US$45.1m. With latest orders, Group’s order book surpassed the one-billion mark, with a total contract value of RM1.3b, comprising 20 vessels scheduled for delivery stretching into 2015.