Nam Cheong

Nam Cheong: We highlight that share price has hit a new all-time high, closing at the $0.40 resistance mark, partly inspired by recent news that the group has sold two Accomodation Work Barges (AWB) worth US$84m, with options to sell another two vessels, to Perdana Petroleum. The two AWBs are the largest to be built by Nam Cheong, and boasts the highest value per unit for the group. In a boost to shareholder’s confidence, Nam Cheong recently conducted two share buyback transactions, buying back a total of 5.5m shares at 37.5c - 38.5capiece, which is near the all time high. This could potentially give investors more confidence to follow suit. Would not be surprised to see the street beginning to rerate their share price upwards, given that most of the TPs has been reached. This is justifiable given their monopolositc position in Malaysia and its robust order book. The group also recently raised its dividend to 1c per share, representing a yield of abt 3%.