Nam Cheong cut to "hold", target lowered to 36 cents by UOB Kay Hian

Stock Name: Nam Cheong
Company Name: NAM CHEONG LIMITED

Research House: UOB KayHian

Price Call: HOLD

Target Price: 0.36

SINGAPORE (Jan 19): UOB Kay Hian has downgraded Nam Cheong to "hold" from "buy" and slashed its price target from 50 cents to 36 cents, pegged at seven times projected 2015 earnings versus eight times previously.

"The sudden oil price collapse has resulted in oil majors deferring and cutting down on their capex budgets, which will have a direct impact on Nam Cheong's built-to-suit business model," UOB Kay Hian analysts Vijay Natarajan and Nancy Wei wrote in a report today.