It is common knowledge that Malaysia’s Petronas has sharply increased its 2012-2017 capex by approximately 70% to MYR300b over the previous five years. A likely beneficiary to this industry development is Nam Cheong Limited (“Nam Cheong”).
Description
According to an independent market research report by Pareto Securities Asia Pte Ltd., Nam Cheong is the largest shipbuilder of offshore support vessels (“OSVs”) in Malaysia and the 2nd largest player east of the Suez Canal. It has about 50-75% of the market share in Malaysia and 7% of the regional market share. It started ship building in 1968 and has more than two decades of track record in building OSVs. Since 2007, it has delivered more than 80 vessels. Examples of OSVs built are accommodation work barges, accommodation workboats, anchor handing tug supply (“AHTS”) vessels, Platform supply vessels (“PSVs”) and safety standby vessels (“SSVs”) etc.
Nam Cheong’s shipbuilding arm comprises ...
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