Nam Cheong Hits Order Book Milestone
Global offshore marine player and offshore support vessel shipbuilder, Nam Cheong announced that it has clinched two contracts for the sale of two accommodation work barges (AWB). The contracts, worth a total of US$59 million will bring Nam Cheong’s year-to-date order book to a high of RM1.06 billion, far surpassing 2011’s figure of RM757 million. The sales of the two AWBs to Perdana Petroleum represents the firm’s second collective contract win in quick succession, following the sales of five vessels in less than two weeks. Perdana Petroleum is an established, major offshore marine services provider for the oil and gas industry in Malaysia and the Southeast Asian region. Leong Seng Keat, executive director of Nam Cheong pointed out that its recent contract wins was reflective of the “robust offshore marine industry in Malaysia spurred on primarily by Petronas’ expanded capital expenditure in exploration and production”.
Significance: Nam Cheong continues to see demand for new businesses relating to top-side maintenance, hook up and commissioning of existing oil platforms. The firm thus sees its AWBs in a beneficiary role in serving the needs of such platforms.
CapitaLand Inaugurates Raffles City Chengdu
CapitaLand, locally-based property developer has officially launched its fourth “Raffles City” development in Chengdu, China. The launch ceremony had in attendance various dignitaries such as Singapore’s prime minister, Lee Hsien Loong; deputy governor of Sichaun province, Ng Kee Choe as well as other government officials and business leaders from China and Singapore. Raffles City Chengdu is located along the Renmin South Road and sits in the heart of the city’s interntional business hub. The mixed development boosts a gross floor area of 195,000 square metres which comprises a shopping mall, grade A officers, a hotel, serviced residences and premium apartments. Lim Ming Yan, chief operating officer of CapitaLand said that “the development not only enhances the business and urban landscape of Chengdu’s core central business district but entrenches the presence of our (CapitaLand’s) real estate value chain in Southwest China and attests to our confidence in Sichuan’s development potential in the long-term”.
Significance: China remains one of CapitaLand’s core markets as it accounts for about 41 percent of the group’s total assets. The group remains confident of China’s potential as the world’s fastest growing economy and hopes to leverage the strong bilateral ties between Singapore and China.
GSH Ventures Into China Property With MOU Signing
GSH Corporation has signed a memorandum of understanding with Chongqing Boneng Property Development to acquire a 60 percent stake in a joint venture for Rmb314.9 million ($61.8 million). The joint venture company will be incorporated in China and has plans to develop three vacant land plots into high-end commercial properties and residences, including bungalows and high-rise buildings. The land plots are located within the central administrative area of Taohua New City in Changshou District, Chongqing. The venture is in line with GSH’s growth strategy that was outlined in July when “popiah king” Sam Goi became its largest shareholder. In a circular released then, GSH said that it was embarking on an “inorganic growth strategy to increase the breadth and depth of the business of the group”. In particular, GSH said that it was exploring opportunities in “property development, construction materials and construction industries”.
Significance: GSH has been removed from the SGX watch-list today after it had achieved a full-year profit and met market capitalisation requirements. The joint venture could provide further impetus for its future financial performance.