She also believes that Nam Cheong, which has been paring debt, has strengthened its balance sheet with forecasted net debt to equity dropping from 0.4 times in 2025 to 0.1 times in 2026. This “raises dividend resumption odds to 20-30% payout”, estimated to be 2.6-3.0 cents, or a 2.5-3.5% yield.
In a research note dated Jan 29, DBS Group Research has reiterated its “buy” call for shipyard Nam Cheong with an even higher target price of $1.60, up from the $1.25 target issued in December 2025.
Analyst Ho Pei Hwa suggests that there is further room for Nam Cheong’s earnings to grow, noting that a "buoyant" offshore support vessel (OSV) secondhand market is signaling newbuild tailwinds and rising demand, with Nam Cheong presumably in position to secure orders and generate profits running from RM$30 ($9.64) million to RM200 million.
