SINGAPORE (Nov 17): DBS is maintaining its “hold” call on Nam Cheong but paring its target price to 15 cents from 17 cents previously on dwindling orderbook and lower earnings forecast.

In 3Q15, Nam Cheong report a 69% fall in revenues to RM189 million ($61.4 million) from a year ago, owing to lower revenues from the shipbuilding segment, as the group delivered only two vessels in the quarter compared to six in 3Q14, and there were no new vessel sales.

Shipbuilding gross margins were also lower than normal due to higher contribution from built-to-order vessels.

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