Nam Cheong (1MZ) investor relations material

Executive summary

• 1H26 revenue rose 25.2% YoY to RM348.3m and net profit rose 82.9% to RM164.4m, including a RM101.0m vessel-disposal gain.

• Core PATMI reached RM164.7m from RM70.1m; adjusted core profit, excluding specified non-core items, operating expenses and JV/associate results, rose to RM166.7m from RM80.4m.

• Shipbuilding revenue returned after six years.

Financial highlights

• Gross profit fell 3% YoY to RM137.1m despite revenue growth; operating profit increased 60.9% to RM192.1m and profit before tax rose 61% to RM183.9m.

• Other income rose to RM102.9m from RM6.3m, mainly reflecting the RM101.0m vessel-disposal gain; other operating expenses increased to RM4.9m from RM1.4m, mainly due to FX losses.

• Finance costs fell 8% YoY to RM9.0m, while selling and administrative expenses rose 60% to RM42.9m.

Outlook and guidance

• Plan to add five vessels to the fleet by year-end; elevated shipbuilding enquiries support the outlook.

• Shipbuilding and chartering provide flexibility to build vessels for the fleet or sell them when market conditions are opportune.

• Previous prospect statement remained unchanged; debt obligations over the next 12 months are expected to be met from cash, receivable collections and operating cash flow, barring unforeseen circumstances.