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Singapore “Flyer” of the Week: Nam Cheong

Offshore marine outfit, Nam Cheong Limited (SGX: N4E), gained 13.8% so far for the first week of 2014, making it our Singapore “Flyer” of the Week. It closed on $0.33 on Thursday.

Nam Cheong is Malaysia’s largest Offshore Support Vessel (OSV) builder and is the second largest OSV shipbuilder east of the Suez Canal. The company is also involved in ship chartering, which was started in 2007 to diversify her business.

On the second last day of 2013, the firm announced that it had set a new record high in vessel sales with its latest contract wins, totaling US$66.0 million. Nam Cheong sold three Anchor Handling Towing Supply Vessels to its jointly controlled entity, PT Bahtera Niaga Indonesia and one Maintenance / Work Vessel to a subsidiary of a repeat customer, Icon Offshore Berhad.

All four vessels are being constructed in subcontracted yards in China and they are scheduled for delivery this year.

For 2013, the company had total sales of 24 vessels, which surpassed the record high of 21 vessel sales set in 2012.

The company also went on to say that the sales of the four vessels will contribute positively to FY2013 and FY2014 earnings.

Mr. Leong Seng Keat, Nam Cheong’s Chief Executive Officer, is “optimistic of an exciting 2014 ahead”.

The company is trading at a historical PE ratio of 9.5 and has a dividend yield of 1.5%.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice.  Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.