Broker Name: CGS International Securities
Date of Report: March 3, 2026
Excerpt from CGS International Securities report.
- Report Summary:
- Nam Cheong Limited’s management is confident in securing newbuild orders, driven by active charterer enquiries, especially for fuel-efficient and hybrid-battery vessels.
- Fleet utilisation is expected to increase to 69% in FY26, supported by new long-term charters and potential activation of idle vessels.
- Order wins are forecasted to rise, with RM350m and RM200m expected for FY26 and FY27 respectively, up from previous estimates.
- Company aims to deleverage before resuming dividends, targeting 2027 for payout; historical dividend range was 10-30% of net profit.
- ESG efforts focus on safety, environmental compliance, and fuel-efficient designs, with emissions intensity improving despite operational scaling.
- Risks include lower fleet utilisation and higher costs, while upside catalysts are fleet expansion and higher-than-expected order wins.
- CGS International maintains an “Add” rating with a higher target price of S\$1.92, reflecting improved earnings outlook and peer comparisons.
Above is an excerpt from a report by CGS International Securities. Clients of CGS International Securities can be the first to access the full report from the CGS International Securities website: https://www.cgs-cimb.com
