NAM CHEONG’s Big Comeback: First Shipbuilding Order in Over a Decade, Strong Chartering Continues

Over the past 12 months, Nam Cheong shares have skyrocketed 172%, turning a once-troubled stock into one of Singapore’s best-performing small-caps. Yesterday, the counter jumped 7.5% to close at S$1.43 with strong volume — as the market reacted to the news that it had clinched US$64.5 million worth of contracts to build four advanced offshore support vessels for a UAE client. This is the first newbuild win in more than ten years for Nam Cheong (market cap: S$569 million). Importantly, it signals the start of an upcycle in newbuild orders for an industry that has scarcely seen newbuilds in a decade or more, resulting in ageing fleets supporting offshore oil & gas projects and wind farms. The vessel is based on the remote control system developed by SeaOwl Group (a France-based marine services company). The vessel will also be equipped with built-in auto docking capability and used for logistical operations that require rapid deployability, versatility and crewless functionality

The order covers two 60-metre Dive Support Vessels (DSVs) for complex subsea work (diving, ROV operations, underwater inspections) and two groundbreaking 60-metre Remote Operated Landing Crafts (ROLCs).

These ROLCs are world-firsts: fully unmanned, remotely piloted via satellite from shore, with auto-docking capability.

All four vessels will be constructed in-house at Nam Cheong’s Miri shipyard in Sarawak and delivered between the second half of 2027 and early 2028.

For a company that has quietly rebuilt its balance sheet while chartering its young fleet of 36 OSVs, this is more than just an order — it’s a powerful signal that the global offshore newbuild cycle is waking up.

The average age of the world’s OSV fleet is now 15–16 years, and with OPEC+ steadily raising production, replacement demand is set to surge.

Analysts are cheering loudly. DBS calls it an “Undervalued Gem, Ready to Set Sail”.

Analyst Ho Pei Hwa wrote: “USD64.5mn newbuild win marks first shipbuilding order in over a decade, signalling OSV demand recovery; World-first unmanned landing crafts highlight upgraded technical capabilities, supporting potential follow-on orders in the offshore upcycle.”

Dividends to resume in FY2026?

"Nam Cheong has accelerated debt repayment over the past year, nearly halving its over RM500mn restructured debt from early 2024 to ~RM280mn by 1Q26. Coupled with strong cash flow from steady charter income, this supports potential resumption of dividend payments, with the endorsement of lenders." -- Ho Pei Hwa, analyst

She estimates the deal will add 3–4% to FY26 earnings and 6–8% to FY27 (conservatively assuming 8–10% net margins) and reiterates her BUY rating with a S$1.60 target price.

Notably, she even sees room for dividend resumption as debt continues to fall.

CGS International was equally bullish, labelling the win “larger-than-expected” and “reopening the orderbook”.

Analysts Meghana Kande and Lim Siew Khee noted: “Stronger-than-expected newbuild orders was a key re-rating catalyst we highlighted…

"We maintain our Add call on NCL for its strategic position as a ship charterer with a young fleet and as a yard operator ready to ride the global newbuild upcycle.”

CGS keeps its S$1.87 target and expects the bulk of earnings impact in FY27.

→ See the CGS report here and DBS report here.
→ For a story from early days: NAM CHEONG: This man's large cash contribution was decisive in his company's survival. Now business is booming