Nam Cheong issued a profit warning last Friday evening, saying that it expects to report a loss for 4Q15, but should remain profitable for FY15. The group has seen minimal new order flow in the past 12 months, and the operating environment is likely to remain challenging due to the pull back in investment capex by oil and gas companies. As Nam Cheong will be releasing its FY15 results by 29 Feb, we maintain our SELL rating but put our fair value estimate of S$0.14 under review.

Source: OCBC Research - 15 Feb 2016