Nam Cheong (1MZ) Q1 2025 earnings summary

Executive summary

• Revenue rose 5% YoY to RM116.6m and gross profit increased 13% to RM56.3m; core profit grew 20% to RM31.1m.

• Reported profit fell sharply as prior-year debt-waiver income and an associate asset-realization gain did not recur.

Financial highlights

• Operating profit was RM47.1m versus RM539.2m and profit before tax was RM43.4m versus RM565.3m; 1Q2024 included debt-waiver income.

• Reported net profit was RM35.2m versus RM554.6m; profit attributable to owners was RM30.4m versus RM552.5m.

• Adjusted core profit, excluding other income, other operating expenses and JV/associate results, rose 20% to RM31.1m from RM26.0m.

• Other income fell to RM4.3m, mainly because debt-waiver gains under the 2024 restructuring did not recur.

• Other operating expenses declined to RM1.8m from RM12.7m; finance costs rose to RM5.2m from RM2.0m as the prior-year interest waiver did not recur.

Outlook and guidance

• No material change was indicated against the previous prospect statement.

• Long-term charter coverage is targeted to rise from over 57% of vessels pre-deployed to ~70% of the fleet, while retaining spot-market flexibility.

• Modern fleet and progress securing long-term charters support participation in regional offshore marine and O&G market growth.

• OSV charter rates are expected to remain well supported in 2025 amid local supply constraints.