(Sept 30): This past week has seen some notable share disposals. On Sept 23, Leong Seng Keat, CEO of Malaysia-based oil and gas shipbuilder <strong>Nam Cheong</strong>, sold 13.9 million shares at 0.6 cent apiece on the open market. This reduced his direct interest to 0.041% or 2.9 million shares in the company. His deemed interest in the company — held by his wife, Tiong Eng Ming, and Dominion Energy, of which he is a director — remained intact at 1.32%, or 94.1 million shares.

Leong’s share disposal comes after Nam Cheong posted a weak set of results in 1HFY2019 ended June 30. Revenue tumbled 23% y-o-y to RM104.6 million ($34.2 million), owing to an absence of shipbuilding revenue, though this was offset by a y-o-y revenue growth of 183% at its vessel chartering segment. Earnings plunged 99% y-o-y to RM3.3 million, even though the company recorded a higher gross profit. The company says it would have recorded a net loss of RM30.9 million, if it excluded the waiver of debts and foreign exchange gain of RM588.1 million.

Looking ahead, the overall outlook for Nam Cheong appears to be challenging — even though, in the notes accompanying the financial statement, the company cited Malaysia’s state-owned petroleum company Petroliam Nasional as saying that a positive outlook was expected for offshore vessels. This is because the company may record an absence of shipbuilding revenue again, owing to potential deferment and cancellation plans. It says it will continue to monitor and review the shipbuilding schedule for the remaining vessels that have yet to be delivered.

Nevertheless, its vessel chartering segment may help keep Nam Cheong afloat. “In response to the uptick in the offshore and marine activities in Malaysia, the group has been deploying its vessels for charter in Malaysian waters, and expects the vessel chartering unit to continue its growth momentum,” the company says.

Meanwhile, <strong>Miyoshi</strong>’s second-largest shareholder Miyoshi Industry Co pared its direct interest in the precision parts manufacturer to 8.5%, or 51.5 million shares.

This was the result of two transactions on the open market. MIC sold 773,000 shares at 3.6 cents apiece on Sept 23, followed by a further 734,400 shares at the same price the following day. MIC has no deemed interest in the company.

MIC’s share disposal comes six days ahead of the extended longstop date of Sept 30 for Miyoshi to increase its stake in Core Power (Fujian) New Energy Automobile Co. The latter is a joint-venture company that manufactures, assembles and sells electric vehicles in China. Miyoshi intends to increase its stake in the JV company to 32%, from 15% currently.

Thus far, Miyoshi has yet to complete the agreement to increase its stake in Core Power (Fujian) New Energy Automobile. It remains to be seen whether its JV partners — Core Power (Fujian) Electric Co and Fujian Kaibote Technology Co — will agree to extend the longstop date again.

Miyoshi announced on Sept 24 that its chief financial officer, Khoo Teck Soon, would resign on Oct 2 “to pursue other career opportunities”. The company says it is looking for a suitable replacement. In the meantime, the duties of the CFO will be assumed by group finance manager Tan Guik Hiang.

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