But  no  more  5,150bhp  AHTS  available  for  2013?  Astute  investors  would  notice  that Nam  Cheong  just  pulled  off  a  small  miracle  -  selling  the  two  AHTS  vessels  for  1Q13 delivery  when  all  the  small  AHTS  for  2013  have  already  been  sold  since November  this year.  Management  clarified  that  the  original  buyers  agreed  to  take  vessels  for  delivery  in 2014 and to give up their current 2013 orders to Icon Offshore. (See shaded lines in Figure 1.)

However, lower FY12F PATMI due to delay of 12,000bhp AHTS sale. With these three vessels sold, the only ship left in this year's shipbuilding programme is the 12,000bhp AHTS  whose possible  non-sale  we  flagged  out  in  our  Sep-12  report. We understand  that there  are  some  variations  on  the  construction,  pushing  delivery  out  to  2013.  Because  of this, our FY12F PATMI falls to RM133m from RM147m, but this still represents a 43% EPS growth from FY11. 

Fast-moving inventory. Nam Cheong has already sold 9 out of the 19 vessels scheduled for delivery in FY13F, and with these sales four out of our forecast 20 vessels for FY14F have already been sold. Nam Cheong is keeping up a very strong order momentum.

Valuation - Maintain BUY with a TP of S$0.300. With the year essentially closed, we roll our  valuations  over  to  8.5x  FY13F  EPS  for  a  TP  of  $0.300,  which  is  a  very  conservative multiple for a company growing at a 28% CAGR for the next three years.

Source: OSK