Nam Cheong

Nam Cheong: Executive Director Leong Seng Keat says the group is eyeing more international market presence, and will focus on areas which have potential for oil and gas activities, citing the hotspot areas for oil and gas business especially in West Africa, Brazil and the Asian region, as it has great opportunities for the OSV market. Says, these three locations are going to be major markets for Nam Cheong in future. At home, Leong said the co remained bullish in terms of demand as increased activities by oil majors have benefited the company. Says the industry would remain favorable as Msia had a very strong exploration and production expenditure programme coupled with expanded capital expenditure by Petronas which was likely to spur oil and gas activities in the country. Leong said 50% of the group''s revenue was derived from its Malaysian business while the remaining accrued from its international operations. Nam Cheong's shipbuilding business, which contributed up to 90% of its revenue between 2008-11, is complemented by its vessel chartering operations. Going forward, Nam Cheong would continue to innovate and improve its current range of products, with shipbuilding to remain the core business. Separately DMG visited Nam Cheong’s Miri Yard over the wkend for the launch of Msia’s first diesel electric Multi Purpose Platform Supply Vessel (MPSV), built for Bumi Armada. Says the yard is small but efficient, with good equipment, being suitably designed and with ample space. The house reiterates its Buy rating with TP $0.30.