Company Name: NOBLE GROUP LIMITED
Research House: CLSA
CLSA starts Noble (N21.SG) at Buy with $2.42 target; says natural resources supply chain group a proxy to increasing demand for both hard, soft commodities in China, India “with established footprints in resource-rich and resource-hungry countries.”
CLSA adds, Noble “a sound and quality growth business” with excellent liquidity ratios, impressive track record (profits +23x since 2000).
Tips 22% EPS CAGR 2010-2013. Notes group generates 28% gross profits from agriculture, 51% energy, 9.0% metals and minerals, 12% logistics. Says stock deserves rerating, company will be more solid, stable business in 2013 “as it harvests the fruits of the investments made in last three years.
Given a strong balance sheet (for a supply chain manager) growth can be funded by debt rather than equity issuances;” target based on 17x 1-year forward P/E. Shares +0.5% at $1.94.
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