Nam Cheong

Nam Cheong: announced that it sold two Accomodation Work Barges (AWB) worth US$84m, with the option to purchase another 2 vessels to a repeat customer, Bursa-listed Perdana Petroleum Berhad. Nam Cheong had previously sold another AWB of a smaller size last July to Perdana. Management cited that the 2 AWBs are the largest to be built by Nam Cheong, and boasts the highest value per unit for Nam Cheong. With the order, cumulative order book is now a whopping RM1.5b. The vessels are expected to be devliered in 2016 and is expected to contribute positively to FY14-16 earnings Nam Cheong trades at 8.3x forward P/E with 9 straight Buys and a TP of $0.46