The company has been growing its order book, lifting earnings visibility down the road.
Year to date, Nordic won total orders worth $54.5 million with nearly half, or 48% from semiconductor and marine, which account for 15%. There is also a "medium-sized" defence contract of between $6 to 20 million that is expected to be awarded, says Hashim.
The latest confirmed orders has grown Nordic's orderbook by 8% y-o-y to $213.5 million. The company is eyeing a well-diversified pipeline of orders with S$135 million in defence, $142 million in semiconductor and $61 million in the marine sector.
The analyst expects Nordic's revenue to ramp up from 2Q26 onwards, particularly from the Thailand precision engineering battery storage contracts.
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As of end of 1QFY2026, the company has also built up a stronger net cash position of $10.2 million, an increase of 149%.
Nordic had earlier indicated plans to allocate between $3.6 and 3.8 million for capex in its manufacturing operations in Thailand. The company also has plans to make acquisitions, as it had done so numerous times previously.
"We believe a special dividend is possible if cash continues to build, with deployment needs taken into account," says Hashim, who has raised his target price for Nordic, which is now trading at just 8.4x FY2026 earnings, from 63 cents to 68 cents.
Nordic Group shares, as at 4.06pm, was down 0.87% to trade at 57 cents. It is up 26.67% year to date.
