Nam Cheong

Nam Cheong: Released a set of very strong results for 1Q12, in line with bullish expectations. Revenue +145% YoY to RM190.5m, on back of more vessels being built and 3 AHTS vessels sold this qtr, for which all the work done were recognized. Net profit +81% to RM33.2m, in line with the rev growth and the normalized margin. Nam Cheong has delivered a stellar start and AmFraser expect the next three qtrs to be even stronger with more vessel sales incoming, based on its % of completion model. The stock is currently trading at 5.8x 2012E P/E vs STX OSV at 8.2x and the bulk of Msian‐listed oil & gas names at 10x‐26x. House note that Nam Cheong should continue to outperform at the operational level given the strong oil & gas scene in Msia and its 50%‐75% market share there.