DBS analyst Ho Pei Hwa believes that, with Nam Cheong trading at around five times P/E, it is an “undervalued gem” compared with other SGX-listed charterers such as Marco Polo Marine (12 times) and Pacific Radiance (eight times). By applying a P/E of eight times for her projected earnings for FY2026, Ho estimates Nam Cheong’s fair value to be at $1.25. If the value of Nam Cheong’s shipyard at Miri is included, that could add up to $1.15 per share when orders for new vessels make a comeback.
Similar to the Straits Times Index (STI), the winds are propelling the sails of Mainboard-listed Nam Cheong’s share price. From between 15 cents and 20 cents in the middle of last year, its share price has surged threefold to close at 77 cents on Nov 18.
The share price gain was backed by bottom-line improvements at the Sarawak-based company, which were boosted by a one-off debt waiver that lifted FY2024 earnings to RM800.2 million ($250 million) from RM180.6 million. More critically, Nam Cheong won a series of multi-year chartering contracts for its fleet of 38 offshore support vessels (OSVs), including about RM1.22 billion in orders announced last November, as well as additional smaller orders since then.
