Nam Cheong

Nam Cheong: 1Q14 preview by DMG, results out 15 May before market. Expects net profit to surge 48% y/y to RM53m, on RM405m of shipbuilding revenue and 19% gross shipbuilding margin. The house introduces FY16e figures that are 45% above consensus. Says stock is still its top pick in the small and mid cap O&G space, with valuations undemanding at 7.5x FY14e P/E, and steady dividend growth and a healthy 3.4% forecast yield. Maintain Buy with TP $0.48.