Nam Cheong: builds small to medium size OSVs mostly for Msian clients such as Petra Perdana and Bumi Armada, and prides itself as Msia’s no. 1 OSV builder. Its yard is located in Miri, Msia. It has an operating track record of 40yrs...
CIMB rates Nam Cheong's capability on par with Spore shipbuilders such as Jaya and Otto Marine. Says the business model is also almost identical, with the group engaging in build-to-order and build-to-stock as well as vessel chartering (10 vessels under the chartering arm). Notes that like the Spore yards, it also sub-contracts building of lower-end vessels or hulls to Chinese yards...
Order book stands at RM647m (S$264m) with 7 units of AHTS, 1 unit of accommodation workboat, 1 unit of accommodation work barge and 1 unit of PSV. Current order book translates to 0.85x FY10 revenue.
The group completed 5 vessels in 2010, 22 in FY09 and 10 in FY08, with avg revenue of S$380m for the past three years...
CIMB’s notes that valuation of stock is pricey, at 3x P/B vs local OSV builders’ 5yr mean of 1.7x, and 10.8x P/E vs peers 5yr mean at 8.6x.
Reiterates preference for STX OSV instead, which is now trading at 8x CY12 P/E.
No comments:
Post a Comment