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After my Jaya's nasty experience during the last GFC, I have been disillusioned with the offshore support sector.
It is a sector that is unique to SGX. While it may look attractive due to supposedly bright macro drivers, the truth is most of these companies are simply specialised vessel/equipment builders or operators.
In that aspect, the cycle of which is important. However, trying to understand the cycle and the underlying drivers are tough and lack transparency.
After looking at Ezra, Swiber, KS Energy experience alongside with that of Jaya, I can't help that they are stories that are "fabricated" to cater to that of market fads.
The few major "Godfathers" here are Tan Kim Seng, Pang Yoke Min. They are the smart cookies that cashed out of their former darlings at right prices and moved on to new vehicles. Anyway since the cycle is not quite predictable and with the ever "slashed and burn" type of approach, I won't try to hard find gems within the sector.
Too tough for me.
GG
(08-08-2014, 11:13 AM)CityFarmer Wrote: The company 2Q report is announced today. The O&M sector is booming.
It seems I have missed more "wonderful" stocks than I have vested...
(not vested)
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NAM CHEONG’S NET PROFIT RISES 53% TO RM63.0 MILLION1 FOR 2Q 2014
- Strong revenue growth on the back of larger order book of approximately RM1.7 billion;
- Gross profit margins of 18% maintained at healthy range;
- Low net gearing ratio of 0.60 times as at June 30, 2014 ensures headroom for growth
http://infopub.sgx.com/FileOpen/NCL-News...eID=308929
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(08-08-2014, 07:54 PM)greengiraffe Wrote: After my Jaya's nasty experience during the last GFC, I have been disillusioned with the offshore support sector.
It is a sector that is unique to SGX. While it may look attractive due to supposedly bright macro drivers, the truth is most of these companies are simply specialised vessel/equipment builders or operators.
In that aspect, the cycle of which is important. However, trying to understand the cycle and the underlying drivers are tough and lack transparency.
After looking at Ezra, Swiber, KS Energy experience alongside with that of Jaya, I can't help that they are stories that are "fabricated" to cater to that of market fads.
The few major "Godfathers" here are Tan Kim Seng, Pang Yoke Min. They are the smart cookies that cashed out of their former darlings at right prices and moved on to new vehicles. Anyway since the cycle is not quite predictable and with the ever "slashed and burn" type of approach, I won't try to hard find gems within the sector.
Too tough for me.
GG
Yes, Jaya is a good case study, especially it was following the same business strategy as Nam Cheong.
(not vested)
“夏则资皮，冬则资纱，旱则资船，水则资车” - 范蠡
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DBS Group analyst report, TP $0.52, rating BUY
(not vested)
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Continues to deliver
Better than expected earnings of RM63m in 2Q14 on the
back of lower marketing expenses
Continues to ride on OSV cycle with sustained flow of
vessel sale contracts
Catalysts from contract wins and details of Nam Cheong’s
own designs expected later this year
Maintain BUY with TP of S$0.52
http://remisiers.org/cms_images/research...cheong.pdf
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Singapore, August 19, 2014 – Nam Cheong Limited (“南昌有限公司”) (“Nam
Cheong”, or together with its subsidiaries, the “Group”), a leading global offshore
marine player listed on the Main Board of the Singapore Exchange Securities
Trading Limited (the “SGX”) and Malaysia’s largest Offshore Support Vessel (“OSV”)
builder, today announced that it has sold four vessels worth approximately US$90
million (approximately S$112.1 million2).
http://infopub.sgx.com/FileOpen/NCL-NR-S...eID=310579
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19-08-2014, 10:02 AM
(This post was last modified: 19-08-2014, 10:05 AM by specuvestor.)
(08-08-2014, 08:41 PM)CityFarmer Wrote: (08-08-2014, 07:54 PM)greengiraffe Wrote: After my Jaya's nasty experience during the last GFC, I have been disillusioned with the offshore support sector.
It is a sector that is unique to SGX. While it may look attractive due to supposedly bright macro drivers, the truth is most of these companies are simply specialised vessel/equipment builders or operators.
In that aspect, the cycle of which is important. However, trying to understand the cycle and the underlying drivers are tough and lack transparency.
After looking at Ezra, Swiber, KS Energy experience alongside with that of Jaya, I can't help that they are stories that are "fabricated" to cater to that of market fads.
The few major "Godfathers" here are Tan Kim Seng, Pang Yoke Min. They are the smart cookies that cashed out of their former darlings at right prices and moved on to new vehicles. Anyway since the cycle is not quite predictable and with the ever "slashed and burn" type of approach, I won't try to hard find gems within the sector.
Too tough for me.
GG
Yes, Jaya is a good case study, especially it was following the same business strategy as Nam Cheong.
(not vested)
IIRC Jaya does not have the same strategy as Nam Cheong. Jaya builds ships that is in demand and lease it out if no buyer, that's why there were clearly 2 divisions in Jaya. OTOH Nam Cheong for some reason or another manages to sell all their ships that they build without prior orders. That's what makes me ponder.
When I met Pacific Radiance the son was singing a different tune that they have orders before they build. And they claim they can build ships ~20% cheaper than Nam Cheong
Jaya model made a lot of sense, it was not done in because of their model, it was done in because of LBO by PE.
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward
Think Asset-Business-Structure (ABS)
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(19-08-2014, 10:02 AM)specuvestor Wrote: IIRC Jaya does not have the same strategy as Nam Cheong. Jaya builds ships that is in demand and lease it out if no buyer, that's why there were clearly 2 divisions in Jaya. OTOH Nam Cheong for some reason or another manages to sell all their ships that they build without prior orders. That's what makes me ponder.
When I met Pacific Radiance recently the son was singing a different tune that they have orders before they build.
Jaya model made a lot of sense, it was not done in because of their model, it was done in because of LBO by PE.
FYI, Nam Cheong operating in two segments, Shipbuilding and Chartering.
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err yea... how much is the chartering biz vs shipbuilding?  IIRC Jaya was pretty balanced.
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward
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(19-08-2014, 10:49 AM)specuvestor Wrote: err yea... how much is the chartering biz vs shipbuilding? IIRC Jaya was pretty balanced.
I have to admit that it is off-balanced, with majority of revenue in shipbuilding. I am not sure on Jaya case. The business models are vastly different, with high-value order in shipbuilding, while chartering is lower valued, but recurring.
Chartering is always part of the company BTS strategy, is pretty assured.
(not vested)
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http://www.businesstimes.com.sg/premium/...s-20140820
PUBLISHED AUGUST 20, 2014
Marco Polo and Nam Cheong join forces
The two companies form a joint venture to expand their businesses
BYMALMINDERJIT SINGH
msingh@sph.com.sg @MalminderjitBT
What's ahead: Marco Polo CEO Mr Lee says the joint venture makes it possible to combine the strengths in ship-chartering and ship-building. - FILE PHOTO
ADDING to the recent hive of corporate activity in the Singapore offshore & marine sector, Marco Polo Marine and Nam Cheong yesterday announced a joint venture (JV) company to expand their offerings, particularly in their chartering business.
Marco Polo yesterday sold a 50 per cent stake in Marco Polo Offshore to Nam Cheong, making Marco Polo Offshore the JV firm.
Marco Polo Offshore recently purchased a newly-built accommodation work vessel (AWV), which was constructed by Nam Cheong. The JV company has also secured a long-term five-year bare-boat contract with an estimated value of more than US$27 million. The contract value would be almost US$50 million if extension options, subject to mutual agreement between the JV company and the charterer, are fully exercised.
The vessel will be utilised to support the unnamed charterer, a regional growing offshore and marine services provider, and is expected to be deployed in the regional waters by early next month for the stated initial period of five years.
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The debt increased further for the company. Base on FY2013, net gearing was more than 50%...
IIRC, the only debt-free O&M player in SGX, is Penguin Int.
(not vested, but vested in Penguin)
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Nam Cheong Limited (the “Issuer”) wishes to announce the appointment of CIMB Bank Berhad,
DBS Bank Ltd. and DMG & Partners Securities Pte Ltd as the joint lead managers and
bookrunners in connection with the issue of S$200,000,000 5.05% fixed rate notes due 2019 (the
"Series 3 Notes") under its S$600,000,000 Multicurrency Medium Term Note Programme (the
"Programme").
http://infopub.sgx.com/FileOpen/NCL-MTN_...eID=310720
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