The company's fleet is on average just nine years old, which makes the ships more attractive to the industry average of 14 to 16 years.
Syahril Hanafiah of RHB Bank Singapore has initiated coverage of Nam Cheong with a "buy" call and target price of $2.05, on the premise that the company is well-positioned for multi-year growth, thanks to its young fleet of offshore support vessels on long-term charters.
More recently, the Sarawak-based company, after years of hiatus, has been awarded contracts to build ships again, which will drive further earnings ahead.
