Following up from previous call made on End Dec 2013. Nam Cheong has indeed staged an incredible breakout and traded to a high of 0.345 before retracing back. For the past 2 months, we have seen it trade within the 5 cents range from 0.300 to 0.35, supported strongly above 0.300. Seem like it is going to test the CRITICAL 0.35 resistance level again where Volume has been strong for the past few days in expectation on solid results. Those waiting for the breakout can accumulate some within this range and hold for the longer term outlook. Can average up at 0.355 and 0.36 for more upside.
Stop loss wide at 0.29
OCBC 27 FEB 2014 - Nam Cheong: Reaching for the sky
Summary: Nam Cheong Limited delivered a record set of results for FY13, with revenue and PATMI growing 43.5% and 50.6% to MYR1,257.5m and MYR205.6m, respectively. The latter exceeded our FY13 forecast by 9.8%. This was partly due to a one-off reversal of deferred tax, excluding which Nam Cheong’s FY13 profit before tax (PBT) of MYR199.2m (+43.8%) would have been 2.0% above our PBT forecast. Management guided that it is targeting to deliver 35 vessels worth a total of US$700m in FY15, ahead of our estimate for 32 vessel deliveries, and also higher than its FY14 target. We lift our target PER peg from 8.5x to 9.5x in recognition of Nam Cheong’s solid execution track record and robust industry outlook. Applying this to our FY14F EPS estimate which has also been raised by 4.9%, we derive a higher fair value estimate of S$0.42 (previously S$0.37) on Nam Cheong. Maintain BUY
Summary: Nam Cheong Limited delivered a record set of results for FY13, with revenue and PATMI growing 43.5% and 50.6% to MYR1,257.5m and MYR205.6m, respectively. The latter exceeded our FY13 forecast by 9.8%. This was partly due to a one-off reversal of deferred tax, excluding which Nam Cheong’s FY13 profit before tax (PBT) of MYR199.2m (+43.8%) would have been 2.0% above our PBT forecast. Management guided that it is targeting to deliver 35 vessels worth a total of US$700m in FY15, ahead of our estimate for 32 vessel deliveries, and also higher than its FY14 target. We lift our target PER peg from 8.5x to 9.5x in recognition of Nam Cheong’s solid execution track record and robust industry outlook. Applying this to our FY14F EPS estimate which has also been raised by 4.9%, we derive a higher fair value estimate of S$0.42 (previously S$0.37) on Nam Cheong. Maintain BUY
Maybank KE 27 FEB 2014- Nam Cheong Ltd - On even keel (BUY, TP SGD0.41, NCL SP, Offshore & Marine)
|
|
No comments:
Post a Comment