Nam Cheong Limited (1MZ) AI Stock Analysis

• Market Cap: S$467.28M
• Dividend Yield: N/A
• Average Volume (3M): 2.22M
• Price to Earnings (P/E): 6.5
• Beta (1Y): 1.30
• 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$1.60
• Price Target Upside: 34.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: S$1.50 ▲(26.05% Upside)

The score is driven primarily by the strong 2024 financial turnaround, tempered by historical volatility, higher leverage, and only moderate cash conversion. Technicals add support due to a clear uptrend, though momentum is extended (RSI/Stoch elevated). Valuation contributes positively via a low P/E, with no dividend data to further bolster returns.

Positive Factors

Profitability turnaround

The sharp 2024 margin expansion and revenue improvement materially raise intrinsic cash generation potential and suggest stronger pricing power or product mix. Sustained higher margins would underpin durable earnings, fund reinvestment, and improve resilience to cyclical pressure.

Balance-sheet de‑risking

Restoring positive equity after years of deficits meaningfully reduces insolvency risk and improves capital structure. This de‑risking enhances ability to access capital, support bids or contracts, and absorb shocks—strengthening long-term operational and strategic flexibility.

Positive cash flow generation

Reversing prior negative cash flow to generate positive operating and free cash flow indicates improved cash discipline. Persistent FCF supports reinvestment, deleveraging or shareholder returns and provides a durable buffer against industry cyclicality over multiple years.

Negative Factors

Historical balance-sheet volatility

Prior multi‑year equity deficits and large swings indicate structural or cyclical volatility in operations or capital management. This history raises the risk that recent gains could reverse, complicates forecasting, and requires sustained execution to entrench the recovery.

Elevated leverage

Higher debt relative to the newly rebuilt equity reduces financial flexibility and magnifies volatility impact on returns. Elevated leverage constrains capital allocation, increases refinancing and interest-rate risk, and limits the company's room to pursue strategic investments without raising more capital.

Moderate cash conversion

Earnings are not fully translating into cash—operating cash below net income and FCF well below net income—indicating weaker earnings quality. This limits the company’s ability to use reported profits to pay down debt, fund capex, or cushion shocks over the medium term.

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

2024 shows a step-change improvement (strong revenue growth, sharply higher profitability, return to positive equity, and positive free cash flow). Offsetting this is prior-year volatility, higher leverage against the newly rebuilt equity base (debt ~0.82x equity), and only moderate cash conversion (FCF well below net income).

Income Statement

Profitability and growth improved sharply in 2024, with revenue up strongly versus 2023 and margins expanding meaningfully (gross margin ~53% and net margin ~115%). 2022–2023 showed positive but much lower profitability, indicating results have been volatile. Overall, the latest year is very strong, but the magnitude of margin swing suggests earnings quality and sustainability should be monitored.

Balance Sheet

The balance sheet shows a major turnaround from negative equity in 2021–2023 to positive equity in 2024, which is a meaningful de-risking step. However, leverage increased in 2024 with debt at ~0.82x equity, and the sharp swing in equity levels highlights historical instability. Asset base has grown, but the company is not yet back to a long record of balance-sheet consistency.

Cash Flow

Cash generation improved in 2024 with positive operating cash flow and positive free cash flow, reversing prior years where free cash flow was negative (2022–2023). That said, cash conversion is only moderate: operating cash flow is below net income (about 0.79x), and free cash flow is well below net income (about 0.49x), suggesting earnings are not fully translating into cash.

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	74 Outperform	S$70.67M	1.49	5.32%	348.53%	-86.29%	20.88%
1MZ	72 Outperform	S$467.28M	6.54	47.96%	―	―	―
RXS	71 Outperform	S$152.81M	4.15	―	0.49%	―	―
BQN	68 Neutral	S$32.10M	18.45	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$59.56M	9.66	28.37%	2.11%	-4.17%	-54.26%
A04	61 Neutral	S$319.00M	20.95	―	0.78%	―	―

Nam Cheong Limited Corporate Events

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.

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.