Nam Cheong cut to "hold", target reduced to 32 cents by CIMB

Stock Name: Nam Cheong
Company Name: NAM CHEONG LIMITED

Research House: CIMB

Price Call: HOLD

Target Price: 0.32

SINGAPORE (April 6): CIMB has downgraded Nam Cheong to "hold" from "add" and cut its price target to 32 cents from 39 cents after lowering its FY2015 to FY2017 earnings per share estimates by 7% to 23%.

"We concede that we were over-bullish to expect Nam Cheong to sustain its 2014 sales momentum," CIMB analyst Yeo Zhi Bin wrote in a note.

Yeo now expects the shipbuilder to sell 19 vessels in 2015 and 22 each in the next two years, down from his earlier forecast of 30 annually from 2015 to 2017.