Broker: DBS Group Research
Date of Report: 18 May 2026
Excerpt from DBS Group Research report.
Report Summary
Nam Cheong Limited (NCL SP)
Action: BUY
Target Price: SGD 1.90
- 1Q26 net profit surged 160% year-on-year to RM79mn due to vessel disposal gains. Core chartering profit declined by ~23% year-on-year to RM23.2mn, mainly from higher operating costs and share-based compensation.
- Vessel utilisation improved to 58% in 1Q26 (vs 48% last year), expected to rise above 70% in 2Q and 3Q as monsoon ends. Five additional vessels to be added in 2026, with further vessel disposal gains (~RM50mn) expected in 2Q26.
- Balance sheet strengthened with net gearing reduced to 0.17x, supporting ongoing deleveraging.
- Nam Cheong is well-positioned to benefit from a multi-year offshore and marine upcycle driven by firm offshore demand, tight OSV supply, and sustained spending by PETRONAS.
Actionable Insight: Maintain BUY with target price SGD 1.90 (12x FY26 PE). Investors should focus on Nam Cheong Limited for growth potential and capital discipline.
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 Group Research website : https://www.dbs.com/
