Nam Cheong Limited (1MZ) AI Stock Analysis

• Market Cap: S$553.67M
• Dividend Yield: N/A
• Average Volume (3M): 2.22M
• Price to Earnings (P/E): 4.5
• Beta (1Y): 1.28
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: SG
• Employees: N/A
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 0.03
• Shares Outstanding: 399,349,000
• 10 Day Avg. Volume: 1,875,510
• 30 Day Avg. Volume: 2,215,710
• PEG Ratio: -0.06
• Price to Book (P/B): 1.44
• Price to Sales (P/S): 1.97
• P/FCF Ratio: 21.46
• 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$1.92
• Price Target Upside: 36.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.47
• Revenue Forecast (FY): S$662.50M

• Rating: 75 Outperform
• Price Target: S$1.50 ▲(6.38% Upside)
• Action: Reiterated Date: 03/01/26
• Date: Action: Reiterated 03/01/26

The score is driven primarily by improved financial strength (restored positive equity and continued profitability) tempered by earnings and cash-flow volatility. Technical signals are notably positive with price above key moving averages and supportive momentum indicators. Valuation is also favorable given the low P/E, though no dividend yield data is available to add support.

Positive Factors

Balance-sheet recovery

The large turnaround to ~817m equity materially improves financial resilience and reduces insolvency risk. Sustained positive equity enhances capacity to fund operations, access credit on better terms, support capital spending, and absorb cyclical shocks, strengthening long-term stability.

Sustained profitability

Consistent net income through 2024–2025 indicates durable earnings power and effective cost structure. Persisting profitability supports reinvestment, debt reduction, and strategic initiatives, underpinning long-term enterprise value even if profits fluctuate year to year.

Positive cash generation

Meaningful operating cash flow and consecutive positive free cash flows show the business can generate internal funding. This improves ability to service debt, fund capex, and return capital without relying solely on external financing, supporting durable operational flexibility.

Negative Factors

Earnings & cash-flow volatility

Historic swings in earnings and FCF reduce predictability for planning and capital allocation. Volatility raises the probability of future cash shortfalls, pressures liquidity buffers, and can increase funding costs, complicating long-term investment and dividend strategies.

Recent revenue contraction

A top-line decline interrupts the prior growth trend and may reflect softer demand or cyclical exposure. Revenue contractions compress operating leverage, can erode margins and hamper reinvestment capacity, making sustained margin and earnings growth harder over the medium term.

Rapid balance-sheet swings

Large, quick shifts in leverage and balance-sheet composition suggest one-off financing events or restructuring. Such volatility can mask underlying trends, create uncertainty about repeatability of improvements, and leave the company exposed if favorable conditions reverse.

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

Fundamentals are improved but uneven: strong profitability through 2024 and still profitable in 2025, plus a major equity turnaround to solidly positive levels. Offsetting this, 2025 revenue contracted modestly and earnings/cash flow have shown meaningful year-to-year volatility, including negative free cash flow in 2022–2023 and only moderate cash conversion versus earnings in 2024.

Income Statement

Revenue expanded strongly from 2021–2024, but 2025 saw a modest contraction (about -4.7%), indicating some near-term volatility. Profitability is a clear strength: gross profit and earnings rose materially through 2024, and 2025 remains profitable (net income ~259m on ~597m revenue), albeit well below the unusually high 2024 profit level. Overall, the company shows strong earnings power but with meaningful year-to-year swings that temper the score.

Balance Sheet

The balance sheet shows a major turnaround in equity: stockholders’ equity moved from deeply negative in 2021–2023 to strongly positive by 2024–2025 (~817m in 2025), which materially improves financial resilience. Leverage increased in 2024 but appears more manageable in 2025 as debt fell sharply (~100m) while assets grew (~1.42b). Key watch-out: the business has experienced dramatic balance-sheet changes over a short period, which can imply higher uncertainty around sustainability.

Cash Flow

Cash generation is positive and meaningful in 2024–2025, with operating cash flow of ~191m (2024) and ~135m (2025) and positive free cash flow in both years (~93m and ~55m). However, cash flow quality has been inconsistent across the cycle: free cash flow was negative in 2022–2023, and 2024 cash conversion appears moderate versus reported earnings (free cash flow was under half of net income). The trend improved into 2025 (free cash flow up ~20.5%), but the multi-year volatility keeps the score mid-range.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	596.57M	684.71M	475.27M	365.72M	286.16M
Gross Profit	288.11M	363.29M	168.60M	100.69M	63.71M
EBITDA	227.47M	901.92M	257.85M	138.58M	152.81M
Net Income	259.13M	785.24M	174.98M	59.32M	86.76M
Balance Sheet
Total Assets	1.42B	1.28B	919.54M	697.08M	606.27M
Cash, Cash Equivalents and Short-Term Investments	202.54M	121.86M	53.38M	62.87M	26.70M
Total Debt	100.01M	458.37M	0.00	0.00	0.00
Total Liabilities	582.59M	704.31M	1.40B	1.32B	1.27B
Stockholders Equity	816.83M	560.78M	-488.81M	-625.31M	-661.26M
Cash Flow
Free Cash Flow	54.76M	92.83M	-53.47M	-29.30M	36.00M
Operating Cash Flow	135.45M	191.06M	24.79M	64.24M	59.17M
Investing Cash Flow	-22.14K	-103.93M	-19.76M	-15.12M	-118.18M
Financing Cash Flow	-73.86M	-20.84M	-8.47M	-17.71M	-6.19M

Nam Cheong Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1MZ	75 Outperform	S$553.67M	4.53	47.96%	―	―	―
RXS	71 Outperform	S$125.16M	―	―	0.49%	―	―
BQN	68 Neutral	S$37.50M	-5,950.00	3.27%	4.67%	-7.22%	-38.95%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5UL	63 Neutral	S$62.82M	6.43	5.32%	348.53%	-86.29%	20.88%
BEZ	63 Neutral	S$82.55M	6.30	28.37%	2.11%	-4.17%	-54.26%
A04	61 Neutral	S$324.15M	―	―	0.78%	―	―

Nam Cheong Limited Corporate Events

Nam Cheong Wins US$64.5 Million OSV Contracts in First Newbuild Deal in a Decade

Nam Cheong Limited has secured US$64.5 million in shipbuilding contracts from an established UAE-based global energy maritime logistics company, marking its first newbuild contract win in more than a decade. The deal covers two 60-metre Dive Support Vessels and two 60-metre Remote Operated Landing Crafts scheduled for delivery in the second half of 2027 and early 2028.

The vessels, to be built at Nam Cheong’s Miri Yard in Malaysia, include remotely operated landing crafts that will be totally unmanned and controlled via satellite from a shore station, touted as the first of their kind globally. The contract underscores a recovery in newbuild demand amid strengthening offshore oil and gas activity and highlights Nam Cheong’s enhanced technological capabilities and competitive positioning in the OSV market.

The most recent analyst rating on (SG:1MZ) stock is a Buy with a S$1.60 price target. To see the full list of analyst forecasts on Nam Cheong Limited stock, see the SG:1MZ Stock Forecast page.

Nam Cheong Converts Subsidiary Holdings into Treasury Shares to Streamline Administration

Nam Cheong Limited has transferred 1,143,564 shares previously held by one of its subsidiaries to the company’s treasury share account, as part of an initiative to enhance efficiency and streamline future administration. Following the transfer, subsidiary holdings were reduced to zero while treasury shares rose from 66,785 to 1,210,349, leaving the total number of outstanding shares unchanged at 398,137,130 and marginally increasing the proportion of treasury shares relative to the company’s share capital.

The most recent analyst rating on (SG:1MZ) stock is a Buy with a S$1.60 price target. To see the full list of analyst forecasts on Nam Cheong Limited stock, see the SG:1MZ Stock Forecast page.

Nam Cheong Sells 3,000 DWT Platform Support Vessel for US$19.8 Million in Fleet Reprofiling Move

Nam Cheong has agreed to sell an 11-year-old, 3,000 DWT platform support vessel to an Indonesian customer for US$19.8 million, with delivery expected in the first quarter of 2026. The sale is part of the Group’s fleet reprofiling strategy and is expected to boost earnings in the 2026 financial year, while the net proceeds will be used to accelerate debt repayment and support working capital. Following the transaction, Nam Cheong will manage 36 OSVs with an average age of nine years, positioning it to capture recurring charter income or pursue further vessel monetisation amid rising offshore activity in Indonesia and a growing global OSV market. Management highlighted that its dual-pronged business model of OSV chartering and shipbuilding is intended to strengthen cash flows and enhance long-term shareholder value.

The most recent analyst rating on (SG:1MZ) stock is a Buy with a S$1.50 price target. To see the full list of analyst forecasts on Nam Cheong Limited stock, see the SG:1MZ Stock Forecast page.

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.