Broker Name: CGS International Securities
Date of Report: April 7, 2026
Excerpt from CGS International Securities report.
Report Summary
- Stock: Nam Cheong Limited (NCL SP)
- Action: ADD (equivalent to Buy)
- Target Price: S\$1.92 (Current Price: S\$1.52; Up/downside: 26.3%)
- Key Idea: Nam Cheong Limited has secured two-year charter contracts worth RM102.5m for two vessels, raising long-term charter coverage to 69% of its fleet. This is expected to increase fleet utilisation and support earnings growth.
- Highlights:
- Fleet utilisation is forecasted to rise to 69% in FY26F, up from 65% in FY25, supported by more long-term charters.
- Persistent high oil prices and increased capex by oil majors from 2027F are seen as key catalysts for further growth.
- No material risk identified for NCL’s newbuild order book; newbuild enquiries remain healthy, especially from West Africa and Southeast Asia.
- Valuation is based on 11x FY27F P/E, in line with sector peers, excluding outliers.
- Key upside catalysts: higher shipbuilding orders, increased offshore activity, and fleet expansion.
- Key risks: lower-than-expected fleet utilisation and higher operating costs impacting margins.
- Ticker: NCL SP
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
