Brokers' take

Nam Cheong Ltd | Hold

March 16 close: S$0.30

Target price: S$0.30

OCBC Investment Research, March 16

LAST week, Nam Cheong announced that it sold two vessels worth about US$58 million to two repeat customers; we estimate that there are another 15 vessels left unsold for 2015 delivery. Despite efforts to diversify revenue, the group is still very much dependent on Asia, and Offshore Support Vessel (OSV) owners in this region have also been impacted by the recent oil price rout, including cabotage-protected markets such as Malaysia and Indonesia. Middle East, another key market, also saw a surge in idl…