SINGAPORE (March 30): CIMB Research has issued a non-rated report on NSL Limited following the release of the industrial group’s FY16 annual report last Wednesday.
NSL’s key business segments comprise precast and prefabricated bathrooms (PBU) and environmental services.
The SGX-listed group has a majority 72.1% stake in marina club Raffles Marina, as well as a 33.33% stake in an associate in Germany, PEINER SMAG Lifting Technologies GmbH.
As at FY16A, NSL’s net cash stood at $430.3 million. It declared a final dividend per share (DPS) of 5 cents in addition to a special DPS of 20 cents for the period.
In a note on Thursday, analyst William Tng highlights NSL’s precast and PBU division as a market leader in manufacturing precast concrete components in Singapore, Malaysia and Dubai, with the business being a dominant producer in Scandinavia.
“Management guided that the precast business in Singapore and Malaysia remains very competitive, with downward pressure on project margins. However, management notes that the precast operation in Dubai and the PBU business in Finland are expected to perform satisfactorily, underpinned by a healthy order book,” he recalls.
Meanwhile, Tng also notes the environmental services division as a key player in integrated environmental services in Singapore, in addition to being a major distributor of automotive diesel oil and other petroleum products in Singapore.
“Management guided that business for this segment is likely to remain stable in light of the recovery of the manufacturing sector,” adds the analyst.
As at 11.14am, shares of NSL are trading flat at $1.74.
