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No turnaround in sight for Nam Cheong: DBS

Dannon Har
Dannon Har3/1/2017 05:18 PM GMT+08  • 2 min read
No turnaround in sight for Nam Cheong: DBS
SINGAPORE (March 1): DBS Bank is maintaining Nam Cheong at “fully valued” with 4 cents target price despite the Malaysian shipbuilder reporting smaller 4Q16 losses compared to a year ago.
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SINGAPORE (March 1): DBS Bank is maintaining Nam Cheong at “fully valued” with 4 cents target price despite the Malaysian shipbuilder reporting smaller 4Q16 losses compared to a year ago.

With zero new orders since last March, negative operating cash flows for FY16, continuing trend of order cancellations and the OSV market facing an oversupply situation, the outlook remains bleak for Nam Cheong, says analyst Suvro Sarkar in a Tuesday report.

In addition, the group faces major liquidity hurdles with bank debt of RM670 million ($212 million) currently maturing while three notes of $90 million, $75 million, $200 million are maturing in FY17, FY18 and FY19 respectively.

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