Broker Name: DBS Group Research
Date of Report: 22 April 2026
Excerpt from DBS Group Research report.
Report Summary
- Stock: Nam Cheong Limited (NCL SP)
- Action: BUY (Reiterate)
- Target Price: SGD 1.90 (12-month target, raised from SGD 1.60)
- Key Highlights:
- Nam Cheong is a leading offshore support vessel (OSV) player with the youngest fleet in Malaysia (average age just over 8 years versus peers’ 13-15 years).
- Company benefits from strong earnings visibility due to long-term charters with Petronas, and diversification into Middle Eastern and Japanese markets.
- OSV utilisation expected to normalise to ~70% in 2H25 and sustain above 70% into 2026-2027, with stable charter rates amid tight supply.
- Recent sale of a newbuild Geotech vessel and a 16-year-old AHTS for USD 36.7mn signals a tightening OSV market; disposal gains (~RM60mn) to be reinvested for shipbuilding or fleet expansion.
- Valuation is considered undemanding at ~9x FY26F PE, a 10%-40% discount to peers. TP lifted to SGD 1.90 based on 12x FY26F PE.
- Key risks: Oil price plunge, charter contract cancellation.
- Actionable Insight: Reiterate BUY with a higher target price of SGD 1.90. Nam Cheong is positioned as a prime proxy to the upcoming OSV newbuild wave with further upside from fleet rejuvenation and shipyard value.
above is an excerpt from a report by DBS Group Research. Clients of DBS Group Research can be the first to access the full report from the DBS website : https://www.dbs.com/
