DBS upgrades ‘hidden gem’ Nam Cheong target price to $1.60
In a research note dated Jan 29, DBS Group Research has reiterated its “buy” call for shipyard Nam Cheong with an even higher target price of $1.60, up from the $1.25 target issued in Dec 2025.
Analyst Ho Pei Hwa suggests that there is further room for Nam Cheong’s earnings to grow, noting that a "buoyant" offshore support vessel (OSV) secondhand market is signaling newbuild tailwinds and rising demand, with Nam Cheong presumably in position to secure orders and generate profits running from RM$30 ($9.64) million to RM200 million.
She also believes that Nam Cheong, which has been paring debt, has strengthened its balance sheet with forecasted net debt to equity dropping from 0.4 times in 2025 to 0.1 times in 2026. This “raises dividend resumption odds to 20-30% payout”, estimated to be 2.6-3.0 cents, or a 2.5-3.5% yield.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
bullrider_21
Moo Contributor
Follow me to get useful analysis, learn TA and make profitable trades.
Maximise profit 利润最大化
20K
Followers
59
Following
49K
Visitors
Follow
bullrider_21 OP : As I expected, the tp has been revised upward above 1.25.
Jackie Toh bullrider_21 OP : master, are u holding tight or profit taking along the way?
bullrider_21 OP Jackie Toh : I take profit along the way. I enter during pullbacks.
104806965 bullrider_21 OP : smart. must learn from u
Jackie Toh bullrider_21 OP : I haven't sold any shares yet. it is hard to sell high buy low
bullrider_21 OP Jackie Toh : Good. It's still rising. Sometimes overbought can be more overbought.
Jackie Toh bullrider_21 OP : can this stock be next yzj shipbuilding ?
bullrider_21 OP Jackie Toh : Yes in terms of price rise, but not in terms of ship building.