Excerpts from analyst reports

570_Namcheong_mpsvNam Cheong is expected to achieve more order flows from Petronas-linked projects in Malaysia in 1H FY2013. Photo: Company
SIAS Research raises Nam Cheong's intrinsic value to 34 cents

Analyst: Ng Kian Teck

Nam Cheong Limited (Nam Cheong) posted full year revenue and PAT of RM$877m and RM136.6m, largely in line with our RM$825m and RM140m forecasts. 

Nam Cheong’s FY14 shipbuilding programme is an astonishing 25 vessels with value amounting to US$520m. The company has sold 13 out of their 19 FY13 shipbuilding programme and we project the remaining 6 and about 12 of the FY14 programme vessels to be sold this year.

The strong shipbuilding order book, optimistic industry outlook prompted us to raised our FY14F and FY15F revenue to RM1.13b and RM1.15b, respectively. Maintain Increase Exposure with a higher intrinsic value of S$0.340.

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UOB Kay Hian highlights 7.1% dividend yield of Second Chance Properties
 

400mohdsallehMohd Salleh, CEO of Second Chance Properties.
NextInsight file photo.
High dividend yield and aggressive share buybacks.
The company has been paying generous dividends of at least 3 S cents for the past five FYs, translating to over 8% in dividend yield.

In 4QFY12, the company bought back approximately 2.93% of its shares at S$0.38-0.395.

Management also expressed their intent to continue with its high dividend payout and aggressive share buybacks. Both of which are expected to support stock price.

Assuming the company maintains its dividend payout of 3 S cents for FY13, it translates to an attractive dividend yield of 7.14%.

• Low gearing; valuation backed by low risk assets and rising rental income. Net gearing ratio dropped from 67.3% in FY10 to 13.3% in 1QFY13.

In addition, approximately 90% of its total assets are in gold and properties that are traditionally good storage of value. 

Since bottoming out in Mar 04, rental yield for the shophouse index has been on a gradual uptrend. With bulk of its investment properties in the vicinity of central Singapore, the company enjoyed a high occupancy rate of 98%.

As such, we believe the company will be able to continue with its high dividend payout supported byits stable and rising rental income.

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