OSK-DMG keeps Nam Cheong's 48-c target on latest news of vessel sales
Analyst: Lee Yue Jer
Nam Cheong (NCL) has secured sale contracts for two vessels - a Platform Supply Vessel (PSV) and an Anchor Handling Tug Supply Vessel (AHTS) - for a combined sum of USD43.1m.
The PSV was sold to a repeat customer in West Africa, E.A. Temile and Sons Development Company of Nigeria Limited, while the AHTS vessel went to a new customer, Kayfour Development Corporation Sdn Bhd in Malaysia.
NCL's order book is maintained at a strong MYR1.4bn.
We expect both vessels to be delivered in the next three months, giving a boost to 1Q/2Q FY14 figures. We continue to like NCL for its dominant position in the shallow-water OSV market. Maintain BUY with an unchanged TP of SGD0.48.
Recent story: Terence Wong: "My $1 m model portfolio has grown to $2.5 m"
UOB Kay Hian downgrades Boustead to 'hold'
Analyst: Andreas Isabel Co, CFA
Downgrade to hold with a higher target price of S$2.00 after outperformance.
After share price climbed by as much as 18% since Feb 14, the upside to our target price is now less compelling. Nonetheless, we continue to like the group’s business model and see potential catalysts.
We raise our FY14-16F net profit forecasts by 7% after tweaking our margin assumptions and imputing some contribution from the water division. Entry price is S$1.74.