Nam Cheong

Nam Cheong: sold three vessels (2 PSVs, 1 accommodation work barge) worth a combined US$70.5m to three customers. The three vessels are being constructed as part of the group’s build-to-stock series in two of its subcontracted yards in China. They are scheduled for delivery btwn 1Q-4Q14, and expected to contribute positively to the group’s FY13-14 financials. Year to date, Nam Cheong has sold 16 vessels vs 7 vessels over the same period last yr. Given the robust industry momentum, mgt believes it is on track to surpass its record high of 21 vessel sales achieved last yr. As at end Jun 2013, Nam Cheong’s order book stood at an estimated RM 1.3b for recognition up to 2015. The stock trades at 9.7x P/E.