Nam Cheong Limited (1MZ) AI Stock Analysis

• Market Cap: S$416.23M
• Dividend Yield: N/A
• Average Volume (3M): 2.22M
• Price to Earnings (P/E): 5.8
• Beta (1Y): 1.32
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: SG
• Employees: N/A
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 0.04
• Shares Outstanding: 399,349,000
• 10 Day Avg. Volume: 1,875,510
• 30 Day Avg. Volume: 2,215,710
• PEG Ratio: 0.07
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 0.66
• P/FCF Ratio: 4.87
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: S$1.25
• Price Target Upside: 17.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: S$1.00 ▼(-5.66% Downside)

The score is driven mainly by a strong 2024 financial rebound, but tempered by historical volatility, higher leverage, and only moderate cash conversion. Technicals add support via a clear uptrend and positive momentum, though overbought indicators increase pullback risk. Valuation is favorable due to a low P/E.

Positive Factors

Profitability Improvement

A material step-up in 2024 profitability and wide gross and net margins indicate stronger pricing power or cost structure. Sustained higher margins would support reinvestment and resilience through cycles, improving long-term earnings durability if operational drivers persist.

Balance Sheet Repair

Re-establishing positive equity materially reduces solvency risk and improves creditor confidence. A repaired capital base supports funding for growth and cushions downturns, providing a structural improvement in financial flexibility versus prior years.

Positive Cash Generation

Reversal to positive operating and free cash flow signals the business can generate internal funds for operations and investments. Durable cash generation lowers reliance on external financing and underpins sustainable capex, dividends, or debt reduction.

Negative Factors

Earnings Volatility

High inter-year earnings volatility undermines predictability of cash flows and planning. For investors and lenders, unstable earnings increase risk premia, complicate capital allocation decisions, and make sustained forecasting of returns less reliable.

Higher Leverage

Elevated debt relative to equity constrains financial flexibility and raises interest and refinancing risk. Higher leverage magnifies downside in weaker cycles, limits capacity for opportunistic investment, and increases sensitivity to cash flow shortfalls.

Weak Cash Conversion

Earnings are not fully converting to cash, suggesting working capital or non‑cash items inflate reported profit. Persistent weak cash conversion limits ability to self‑fund growth or pay down debt, and raises vulnerability if margins revert.

Nam Cheong Limited Business Overview & Revenue Model

Company Description

Nam Cheong Limited, an investment holding company, provides shipbuilding and vessel chartering. It builds various vessels, including anchor handling tug supply (AHTS) vessels, platform supply vessels (PSVs), maintenance work vessels (MWV), accommodation work barges (AWB), safety standby vessels (SSVs), landing crafts, and fast crew boat (FCB). The company also provides vessel chartering and ship delivery services, as well as engages in the trading activities. It primarily serves oil majors, oil field service providers, and ship owners, as well as marine services operators. The company operates in Malaysia, Singapore, Indonesia, Vietnam, the People's Republic of China, the Netherlands, India, Tunisia, the Middle East, the United States, West Africa, and Latin America. The company was founded in 1968 and is based in Singapore.

How the Company Makes Money

Nam Cheong Limited Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown	TTM	Dec 2024	Dec 2024	Dec 2023	Dec 2023	Dec 2022
Income Statement
Total Revenue	626.02M	―	684.71M	―	475.27M	―
Gross Profit	333.45M	―	363.29M	―	168.60M	―
EBITDA	352.55M	―	901.92M	―	257.85M	―
Net Income	241.88M	―	785.24M	―	174.98M	―
Balance Sheet
Total Assets	1.33B	―	1.28B	―	919.54M	―
Cash, Cash Equivalents and Short-Term Investments	61.61M	―	121.86M	―	53.38M	―
Total Debt	439.12M	―	458.37M	―	0.00	―
Total Liabilities	621.80M	―	704.31M	―	1.40B	―
Stockholders Equity	686.04M	―	560.78M	―	-488.81M	―
Cash Flow
Free Cash Flow	45.43M	―	92.83M	―	-53.47M	―
Operating Cash Flow	110.28M	―	191.06M	―	24.79M	―
Investing Cash Flow	-65.52M	―	-103.93M	―	-19.76M	―
Financing Cash Flow	-84.13M	―	-20.84M	―	-8.47M	―

Nam Cheong Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5UL	76 Outperform	S$57.06M	1.20	5.32%	348.53%	-86.29%	20.88%
1MZ	73 Outperform	S$416.23M	5.82	47.96%	―	―	―
RXS	71 Outperform	S$168.81M	4.58	―	0.49%	―	―
BQN	68 Neutral	S$32.70M	18.79	3.27%	4.67%	-7.22%	-38.95%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BEZ	63 Neutral	S$63.74M	10.34	28.37%	2.11%	-4.17%	-54.26%
A04	61 Neutral	S$272.69M	17.91	―	0.78%	―	―

Nam Cheong Limited Corporate Events

Nam Cheong Sells 4,000DWT Platform Supply Vessel for US$20.5 Million to Fund Fleet Reprofiling

Nam Cheong has agreed to sell a 4,000 deadweight tonne platform supply vessel to a Vietnam-based offshore and marine group for US$20.5 million, with delivery slated for December 2025 and the transaction expected to boost earnings for the 2025 financial year. The net proceeds will be redeployed into its shipbuilding operations and potential fleet expansion as part of a broader fleet reprofiling and capital recycling strategy, enabling the company to monetise ageing assets while leveraging its younger fleet and in-house shipbuilding to meet rising demand amid an ageing regional offshore support vessel fleet and tightening safety and efficiency requirements.

The most recent analyst rating on (SG:1MZ) stock is a Buy with a S$1.25 price target. To see the full list of analyst forecasts on Nam Cheong Limited stock, see the SG:1MZ Stock Forecast page.

Nam Cheong Limited Wins Prestigious Profit Growth Award

Nam Cheong Limited has been recognized for achieving the highest profit growth over three years in its sector, winning the Centurion Club Award at The Edge Singapore Billion Dollar Club Awards 2025. This accolade highlights the company’s sustainable financial recovery and strategic repositioning in the offshore energy industry. Nam Cheong’s leadership in OSV chartering and shipbuilding positions it well to capitalize on emerging opportunities, ensuring stable cash flow through long-term charter contracts and mitigating market volatility.