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But over here for Nam Chong, DBS use a conservative PE TP of 8x only.
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" all 3 have their target raised by analyst
YZJ : $4.51 (TP PE 10)
NC: $1.25 (TP PE 8)
Marco : $0.13 (TP PE 14x) "
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" all 3 have their target raised by analyst
YZJ : $4.51 (TP PE 10)
NC: $1.25 (TP PE 8)
Marco : $0.13 (TP PE 14x) "
muifan ( Date: 19-Nov-2025 13:22) Posted:
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all 3 have their target raised by analyst
YZJ : $4.51
NC: $1.25
Marco : $0.13
YZJ : $4.51
NC: $1.25
Marco : $0.13
superstartup ( Date: 19-Nov-2025 13:06) Posted:
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Potential multi-bagger. Nam Cheong is trading at only ~5x FY26 PE, an unwarranted, steep discount of 50%-60% to closest peers such as Singapore-based Macro Polo (12x PE), Pacific Radian (8x), and Malaysia-based Lianson (24x). We believe Nam Cheong& rsquo s fair value should be SGD1.25, based on 8x FY26 PE. This does not reflect the potential valuation of its Miri Shipyard, which could add SGD0.13-1.15/share when OSV newbuilds make a comeback.
muifan ( Date: 19-Nov-2025 13:02) Posted:
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Wow yzj nam Cheong Marco Polo
3 powerful ships
3 powerful ships
Further update (just out) by DBS from briefing and NDR
18 Nov 2025
Management conveyed an assuring business outlook, highlighting strong fleet utilisation and a prudent, strategic approach to fleet expansion, and focus to cherry-pick higher value-add newbuild orders to maximise returns. We have just initiated coverage with a BUY rating and target price of SGD1.25 (8x FY26 PE), which yet to factor in potential upside from shipbuilding earnings and idling workboat deployment. Current valuation reflects a 40-60% discount relative to peers such as Pacific Radiance (8x PE) and Macro Polo (12x PE), a gap expected to narrow as earnings visibility and newbuild activity improve.
18 Nov 2025
Key takeaway from briefing and NDR
Management conveyed an assuring business outlook, highlighting strong fleet utilisation and a prudent, strategic approach to fleet expansion, and focus to cherry-pick higher value-add newbuild orders to maximise returns. We have just initiated coverage with a BUY rating and target price of SGD1.25 (8x FY26 PE), which yet to factor in potential upside from shipbuilding earnings and idling workboat deployment. Current valuation reflects a 40-60% discount relative to peers such as Pacific Radiance (8x PE) and Macro Polo (12x PE), a gap expected to narrow as earnings visibility and newbuild activity improve.
- Despite a moderated O& G capex environment in Malaysia this year and possibly remain benign into 2026, pockets of opportunity persist, notably in the Middle East and emerging vessel types such as autonomous and specialised vessels servicing O& G, offshore wind, and telecommunications sectors.
- Nam Cheong recently took delivery of its first Geotech vessel with another unit expected by year-end, both contributing from 2026 an additional geotech vessel is planned for next year. These vessels are targeted at subsea surveys for offshore wind in Taiwan, Japan, Korea, and Vietnam, and O& G pre-jackup rig surveys, commanding day rates of USD15-20k (rising to USD30-40k/day if bundled with data services), with potential scale-up via partnerships or acquisitions. Demand for such vessels are picking up especially towards 2H26 in anticipation of higher offshore wind activities in the region.
- Nam Cheong&rsquo s strategic shift towards 60-70% long-term contracts has improved resilience amid the industry slowdown, with utilisation expected to average ~70% in FY26F (vs ~63% in FY25E), driven by full deployment of long-term charters and redeployment of cancelled Japan contracts. Additional upside may come from deploying idling workboats to the Middle East. For vessels under long-term charter, max utilisation is ~85% while the remaining 40% vessels on spot charter is currently operating at ~50% with room for improvement.
- Day rates are expected to remain steady due to constrained supply, with no ATHS and limited PSV deliveries in 2026 and a significant portion of the fleet aging 20-25 years, underscoring the need for fleet rejuvenation.
- Management remains optimistic on the long-suppressed OSV newbuild wave, with positive progress on new contract negotiations. One newbuild order could incrementally increase earnings and fair value by 2-3%, with Miri shipyard capacity to handle 6-8 units, including 3-4 company-owned vessels, before outsourcing.
- Management also clarifies that the litigation settlement incurred in 3Q25 was the onlyoutstanding lawsuit against the company, traced back to 2022. On the other hand, company is also pursuing Japanese customer for recoup of cost incurred and loss of income resulted from the contract cancellation in Sept-2025.
18 Nov 2025
DBS Stock Pulse: Nam Cheong < Initiating coverage> - Attractive valuation and earnings recovery potential
DBS Stock Pulse: Nam Cheong < Initiating coverage> - Attractive valuation and earnings recovery potential
Stocks to Watch
Nam Cheong
< Initiating Coverage> Undervalued Gem, Ready to Set Sail
- A leading OSV builder-turned-owner operating the youngest fleet in Malaysia
- Long-term charters offer strong earnings visibility, with sequential improvements in utilisation and fleet expansion expected to drive double-digit growth
- Prime beneficiary of potential revival of OSV newbuild orders, which saw minimal activity over the past decade
- Unwarranted 40%-60% discount to peers Initiate with BUY TP of SGD1.25 (8x PE) yet to factor in potential accretion from idling workboats and OSV newbuilds (SGD0.13-1.15/share)
17 Nov 2025
by DBS
Undervalued Gem, Ready to Set Sail (Initiating Coverage)
- A leading OSV builder-turned-owner operating the youngest fleet in Malaysia
- Long-term charters offer strong earnings visibility, with sequential improvements in utilisation and fleet expansion expected to drive double-digit growth
- Prime beneficiary of potential revival of OSV newbuild orders, which saw minimal activity over the past decade
- Unwarranted 40%-60% discount to peers Initiate with BUY TP of SGD1.25 (8x PE) yet to factor in potential accretion from idling workboats and OSV newbuilds (SGD0.13-1.15/share)
Double-digit growth ahead potential revival of OSV newbuild orders adds tailwind. Nam Cheong operates a fleet of 38 mid-sized offshore support vessels (OSVs) with an average age of just over eight years. This represents a strong competitive advantage, as peer fleets average 13-15 years of age. The company benefits from strong earnings visibility due to captive demand from Petronas and a strategic shift towards 60%-70% long-term charters. Nam Cheong is also diversifying its geographic presence and product offerings to tap into the buoyant Middle Eastern and Japanese markets, as well as growing demand for green offshore solutions. Utilisation in 1H25 was weaker y/y due to vessel downtime for preparations related to long-term charters. However, it should normalise in 2H25 and 2026, reaching ~70%, vs. ~60% in 1H25. This normalisation is expected to drive sequential revenue growth of 18% h/h in 2H25 and ~12% y/y in 2026, supported by relatively stable charter rates amid tight supply. Further earnings upside expected from successful redeployment of idling workboats and newbuild orders which are yet factored in. The OSV industry faces increasing pressure to rejuvenate its ageing fleet, ideally keeping vessels under 20 years old. This revived demand for newbuilds will benefit Nam Cheong&rsquo s Miri shipyard, potentially generating RM20-180mn in profit.
Potential multi-bagger. Nam Cheong is trading at only ~5x FY26 PE, an unwarranted, steep discount of 50%-60% to closest peers such as Singapore-based Macro Polo (12x PE), Pacific Radian (8x), and Malaysia-based Lianson (24x). We believe Nam Cheong&rsquo s fair value should be SGD1.25, based on 8x FY26 PE. This does not reflect the potential valuation of its Miri Shipyard, which could add SGD0.13-1.15/share when OSV newbuilds make a comeback. Initiate with BUY.
good analysis I am confused by your dates though, the price fell through today Nov 17 and not Nov 14. somehow prices were shooting up on friday Nov 14. from the open. Obviously, some people on the wind of earnings announcement. But the outcome isnt what they expected.
sfw2124 ( Date: 17-Nov-2025 20:29) Posted:
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Analysis: Nam Cheong (1MZ) 3Q2025 Earnings - Shareholder Misunderstanding Confirmed
The Core Issue: Yes, Shareholders Misinterpreted the Results
The evidence is clear&mdash many Nam Cheong shareholders have significantly misunderstood the 3Q2025 financial results and reacted excessively to headline negative metrics. The stock declined approximately 11% from its peak of 0.850 SGD (November 13) to 0.745 SGD (November 14-17) following the earnings announcement on November 14, 2025. However, this sell-off was driven by surface-level earnings metrics that obscure a substantially more positive operational
The Misunderstanding Explained
Headline Confusion: Year-over-Year Decline
The market focused on the headline year-over-year metrics that appeared negative:
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PATMI down 3% YoY (RM45.8 million vs RM47.1 million) -
Revenue down 15% YoY (RM170.8 million vs RM200.4 million) -
Operating profit down 26% YoY (RM61.8 million vs RM83.2 million)
These metrics created an initial perception that the business is deteriorating, triggering panic selling.
What Shareholders Overlooked: The Real Story
The critical insight shareholders missed is understanding the business context and sequential performance:
1. 3Q2024 Was Exceptionally Strong (High Comparison Base)
3Q2024 represented an unusually profitable quarter with 86% vessel utilisation&mdash significantly above normalized levels. This creates an unfavorable year-over-year comparison baseline. The current 70% utilisation in 3Q2025 is management' s described " normalised" level, reflecting the intended business model post-restructuring where the company prioritizes long-term charters over spot market volatility.
2. Quarter-over-Quarter Momentum is Strongly Positive
The sequential QoQ comparisons tell the real operational story shareholders ignored:
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Revenue UP 6% QoQ (RM170.8m vs RM161.6m in 2Q2025) -
Core PATMI UP 26% QoQ (RM55.3 million vs RM43.8 million in 2Q2025) -
Vessel utilisation UP from 68% to 70% QoQ
This represents genuine quarter-over-quarter acceleration after the strategic transition to long-term charters.
3. The Core PATMI Growth Was Misunderstood
Investors missed that the company reported Core PATMI growth of 26% QoQ, which excludes one-off items and provides a cleaner view of operational profitability. This metric more accurately reflects the underlying business improvement than the reported PATMI figure.
The reported PATMI comparison was unfavorably influenced by:
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A one-off litigation settlement expense related to vessel chartering activities in 3Q2025 -
Lower one-off costs in 3Q2024, which had inflated that quarter' s apparent profitability
4. Gross Margin Resilience
Despite vehicle maintenance costs impacting profitability, gross margin remained solid above 50% at 51.2% (compared to 52.6% in 2Q2025). This demonstrates pricing power and operational efficiency that shareholders overlooked.
5. Fleet Deployment Progress Toward Target
The company achieved 70% vessel utilisation with 60% of the fleet on long-term charters, moving progressively toward its 70% long-term charter target. This strategic positioning provides earnings visibility and resilience&mdash exactly the kind of business model improvement that typically warrants premium valuations.
Price Action Analysis: Technical Confirmation of Misunderstanding
Your attached 3-minute chart clearly shows the market structure around the announcement:
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The stock consolidated in the 0.745-0.80 SGD range pre-announcement -
Price broke down sharply on November 14 following the earnings release -
The Aroon indicator shows directional weakness post-announcement -
RSI at 23.045 suggests oversold conditions by November 15 -
MACD turning negative after previously positive momentum
This technical breakdown is consistent with panic selling triggered by misinterpreted headline metrics rather than a fundamental deterioration in the business.
What Investors Should Consider
The Positive Case (Often Overlooked):
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Profitable Transition to Long-Term Charters: The company is successfully transitioning from volatile spot market chartering (86% utilization in 3Q2024) to a more stable long-term charter model (70% utilization at 60% fleet coverage in 3Q2025). -
Sequential Earnings Acceleration: Core PATMI growing 26% quarter-over-quarter demonstrates accelerating operational performance as more long-term charters come online. -
Regional OSV Market Tailwinds: Management noted " structural supply constraints" in the local OSV market with an " ageing existing fleet" and subdued new vessel construction, supporting longer-term pricing power. -
Strategic Progress: The company is moving toward its 70% long-term charter coverage target while exploring fleet expansion opportunities.
The Risk Considerations:
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Accrual Ratio Concern: Research suggests Nam Cheong' s earnings quality warrants scrutiny, with relatively high accrual ratios indicating cash conversion may lag reported profits. -
Valuation Compression: The 11% decline from recent peaks suggests the market may be pricing in additional risks or adjusting from an over-extended valuation. -
No Dividend Declaration: The company declared no dividend for 3Q2025, suggesting management is conservatively retaining cash despite profitability.
Conclusion
Yes, shareholders have materially misunderstood Nam Cheong' s 3Q2025 results. The market' s focus on year-over-year revenue decline (-15%) and PATMI decline (-3%) has obscured a more encouraging underlying narrative of quarter-over-quarter earnings acceleration (+26% core PATMI), improving vessel utilization, and strategic progress toward the long-term charter target.
The 11% share price decline appears excessive given the positive operational momentum and sequential earnings improvement, particularly if investors were simply reacting to headline YoY metrics without understanding the business model transition and high comparison base from 3Q2024' s exceptionally strong 86% utilization levels.
For traders with a technical perspective, the current oversold RSI readings (23) combined with positive operational momentum could present a potential re-entry opportunity, provided the company maintains its trajectory toward 70% long-term charter coverage and demonstrates that Core PATMI growth can sustain above 26% QoQ levels in coming quarters. DYODD
chiachiawee ( Date: 17-Nov-2025 16:31) Posted:
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Good trade. Thank you shortists!!
Tracer63 ( Date: 17-Nov-2025 11:56) Posted:
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Everytime I see this stunt I know something coming. Based on the result itself it could be traded at PE5X to 6X annualised earnings. Its still lower than the peers where some has traded at PE10X to 15X, and an average of 8.5X. It has been consistently generating good profit margin at around 50% and good earnings quarter after quarter, by FY2025 itself with a good profit it could swing into accumulated profit and may start some corporate action. DBS just raised to $1.25 by the way (source from Moo Moo). Cheers.
good chance to load again at 74-75
Almost 300 plus lots of cross over trades done at 0.83 so insider should know better it's value, over shorted..
Wahlau, 3Q results published on Sat, 15 Nov already lah.
Not good, that' s why dropped so much.
But it shot up alot just before results - some kenna con!!!
Not good, that' s why dropped so much.
But it shot up alot just before results - some kenna con!!!
Noobplayer ( Date: 17-Nov-2025 10:13) Posted:
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Will be recovered to above 80 cents before closing today... 🧐
Noobplayer ( Date: 17-Nov-2025 10:13) Posted:
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isit 3Q FR released was bad?
What's happening? Don't short..🤨 🤨
PQTPQK ( Date: 12-Nov-2025 20:09) Posted:
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Wah.. drop so much...
Tomorrow should break high
SJ0724 ( Date: 12-Nov-2025 16:59) Posted:
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Yes....Surprisingly nobody talking about it at all....
PQTPQK ( Date: 12-Nov-2025 16:21) Posted:
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