Nam Cheong's Benefit From Accelerated Debt Repayment Appears Minimal — Market Talk

Nam Cheong's benefit from its accelerated debt repayment via interest savings appears minimal, RHB Research's Syahril Hanafiah says in a research report. It recently announced its borrowings fell 33% to 285.0 million ringgit as at mid-April from 425.4 million ringgit as at end-2025, the analyst notes. Drivers are stable chartering cash flow and proceeds from vessel disposals completed late last year and early this year. The analyst estimates the Singapore-listed offshore marine group's interest savings at around 5 million ringgit in 2026 from the debt reduction, assuming a 5% cost of debt. RHB Research maintains the stock's buy rating and target price of S$2.05. Shares are 3.8% lower at S$1.52. (ronnie.harui@wsj.com)