Nam Cheong

Nam Cheong: Announced this morning that it has clinched contracts worth a total of US$43.1m for the sale of one unit of Anchor Handling Towing Supply (AHTS) vessel (5,150 BHP) and one unit of Platform Supply Vessel (PSV) of 5,000 DWT under its built-to-stock model. Deliveries for both vessels are scheduled in 2014. This lifts Nam Cheong’s YTD contract wins to seven vessels amounting to US$113.1m. The AHTS was sold to a new customer, Kayfour Development Corporation Sdn Bhd, while the PSV was sold to a repeat customer E.A. Temile and Sons Development Company of Nigeria Limited. According to Nam Cheong, its order book stands at ~MYR1.4b following these order wins. OCBC maintain its BUY rating and $0.42 fair value on Nam Cheong.