- 1H26 PATMI met 46% of FY26e forecast. PATMI grew 20.9% YoY to S$10mn in 1H26. This was driven by lower distribution costs, lower finance costs, and a smaller FX loss.
- Orderbook grew 37.5% YoY to S$254.3mn. The majority of the current orderbook is made up of contracts in the semiconductor and marine & offshore industries (c. >55%). New contract wins amounted to S$71.5mn to be delivered in the next 3 years. The contract wins are primarily across segments in defence (27.6%), marine & offshore (27.3%), semiconductor (25.7%). The sales pipeline is larger, concentrated in defence (S$173mn), semiconductor (S$160mn), marine (S$89mn) and engineering services (S$48mn).
- We maintain a BUY rating with an unchanged TP of S$0.68. Nordic trades at an 9.9x FY26e P/E. Nordic has a sizeable pipeline nearly double the current orderbook (c. S$470mn). There could be an upside through the issuance of a special dividend this year as the balance sheet improves and record profit is achieved.
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