Nam Cheong's Earnings Visibility Looks Strong Thanks to Two Tailwinds -- Market Talk

Dow Jones
04/22

0716 GMT - Nam Cheong's earnings visibility looks strong due to two tailwinds--captive demand from Petronas Gas and a strategic shift toward 60%-70% long-term charters, DBS Group Research's Pei Hwa Ho says in a research report. Utilization of its fleet of mid-size offshore support vessels is expected to sustain above 70% on average in 2026-2027, underpinned by relatively stable charter rates amid tight supply, the analyst says. Further earnings upside is expected from successful redeployment of idling workboats and newbuild orders. DBS raises the stock's target price to S$1.90 from S$1.60 based on estimated 2026 PE of 12x versus 10x previously, with an unchanged buy rating. Shares are 1.95% higher at S$1.57. (ronnie.harui@wsj.com)

 

(END) Dow Jones Newswires

April 22, 2026 03:16 ET (07:16 GMT)

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