Stock Name: Nam Cheong
Company Name: NAM CHEONG LIMITED
SIAS Research in Dec 5 research report says: "Nam Cheong Limited is one of the few offshore support vessel (OSV) shipbuilders that can benefit from rising O&G activities in Malaysia. Particularly, Petronas is slated to ramp up its capex to RM300 billion over the next five years.
"For 4Q FY2011, we expect the company to generate revenue and profit after tax of RM233 million and RM27.8 million on the back of current healthy order book. Revenue for FY2012F and FY2013F is projected to soar to RM968 million and RM1,259 million respectively due to anticipated orders from O&G operators in Malaysia.
"Priced at 3.9X FY12F P/E and 0.89X P/B, we reckon that the counter is significantly undervalued now. Adopting an Economic Profit Valuation, we arrive at an intrinsic value of 23 cents, representing an upside of 96.6%. INCREASE EXPOSURE."
Company Name: NAM CHEONG LIMITED
| Research House: SIAS | Price Call: BUY | Target Price: 0.23 |
SIAS Research in Dec 5 research report says: "Nam Cheong Limited is one of the few offshore support vessel (OSV) shipbuilders that can benefit from rising O&G activities in Malaysia. Particularly, Petronas is slated to ramp up its capex to RM300 billion over the next five years.
"For 4Q FY2011, we expect the company to generate revenue and profit after tax of RM233 million and RM27.8 million on the back of current healthy order book. Revenue for FY2012F and FY2013F is projected to soar to RM968 million and RM1,259 million respectively due to anticipated orders from O&G operators in Malaysia.
"Priced at 3.9X FY12F P/E and 0.89X P/B, we reckon that the counter is significantly undervalued now. Adopting an Economic Profit Valuation, we arrive at an intrinsic value of 23 cents, representing an upside of 96.6%. INCREASE EXPOSURE."
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