tag:blogger.com,1999:blog-8488305785096287326.post5017575878761578633..comments2024-03-28T15:28:28.391+08:00Comments on A Young Investor's Diary: Nam Cheong Limitedsgyounginvestorhttp://www.blogger.com/profile/02036598665471392859noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-8488305785096287326.post-669271748100678182013-10-26T04:17:32.073+08:002013-10-26T04:17:32.073+08:00Nam Cheong's high ROE and strategic move into ...Nam Cheong's high ROE and strategic move into Indonesia backed by a strong position in home market Malaysia impress.Concerns are Cash flow after Working Capital changes and OSV competition from China.<br />PGLAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-8488305785096287326.post-18346607669118825742013-03-16T22:23:31.479+08:002013-03-16T22:23:31.479+08:00i think you have to understand that Nam Cheong emp...i think you have to understand that Nam Cheong employs build to stock model where they will build ships in advance of any order. So there will be instance where they build and sell immediately instead of going to orderbook.<br /><br />In any case, i do like investor central articles for providing unique insights and the courage to ask the right questionsgyounginvestorhttps://www.blogger.com/profile/02036598665471392859noreply@blogger.comtag:blogger.com,1999:blog-8488305785096287326.post-38399553086863525202013-03-14T16:55:50.685+08:002013-03-14T16:55:50.685+08:00Look what I've found here!
Nam Cheong Limited...Look what I've found here!<br /><br />Nam Cheong Limited: What is wrong with its order book numbers, yet again? - Nam Cheong’s order book still remains a mystery – number of vessels in order book not disclosed, fewer than targeted vessels delivered in 2012. http://www.investorcentral.org/show_text.php?textid=17497<br />Anonymoushttps://www.blogger.com/profile/04590085854438709411noreply@blogger.comtag:blogger.com,1999:blog-8488305785096287326.post-67862059246675702752012-05-09T19:49:07.235+08:002012-05-09T19:49:07.235+08:00I think the key to a successful build-to-stock mod...I think the key to a successful build-to-stock model lies in having highly competence manager as well as a very strong balance sheet. If the company has a strong balance sheet, unsold ship can be held until the market turns better and in the meanwhile it can be used for chartering. However, if debt is high, it will face trouble with the debt and will be forced to do a "forclosure" on its ship.<br /><br />As shipbuilding is a cyclical industry, it is definitely best to catch in a downturn. Neither should we assume the success of 2008 for Nam Cheong as a prelude to the future of Nam Cheong.<br /><br />That say, this indeed shows that a business with a better strategy and model can deliver higher profit margin.sgyounginvestorhttps://www.blogger.com/profile/02036598665471392859noreply@blogger.comtag:blogger.com,1999:blog-8488305785096287326.post-11386853206094763152012-05-08T21:56:50.266+08:002012-05-08T21:56:50.266+08:00Did look at Nam Cheong earlier hoping to ride on t...Did look at Nam Cheong earlier hoping to ride on the offshore O&G hype, but as you have mentioned, there are a few considerations that makes it look less attractive.<br /><br />The strong debt puts me off in the first place and that actually ended my research in it.<br /><br />And for its build-to-stock model, I reckon it is too speculative. It may prove to be accurate for a small company - building in anticipation of a few ships is fine. But in the case of a larger operation scale, I believe there are some high risks elements. If the cyclical timing fails, then they will have to absorb the entire vessel cost. Bear in mind that this will have an adverse effect on its cash conversion cycle. Caught in the wrong timing, they might end up like Jaya or Otto during the 2008 period.<br /><br />They can easily switch to chartering, no doubt about that. But the transition to chartering will cause a strong depression to its earning power. You may want to look at Jaya's recent quarter results, it is a case of a transition from shipbuilding to ship chartering.dzwm87noreply@blogger.com