Nam Cheong

Nam Cheong: Potential positive sentiment after grp announce that it has secured a US$59m (Rm180.4m) worth of contracts for two units of Accommodation Work Barges (AWBs). The two AWBs were sold to Perdana Petroleum, an established, major offshore marine services provider for the oil and gas industry in Malaysia and the Southeast Asian region. With the Contracts, Nam Cheong’s order book stands at approximately RM1.4b to date, underpinning earnings visilibity for the next 4 yrs. Ytd grp has secured abt RM807.0m worth of contracts. We note that grp’s order wins momentum appears on track to exceed those of FY12, with more then half of its orderbook being secured this yr already. OCBC maintains Buy with $0.30 TP.