NOL - NOL cut to Hold from Buy by Phillip; Eyes $2.41

Stock Name: NOL
Company Name: NEPTUNE ORIENT LINES LIMITED
Research House: Phillip Securities

Phillip Securities downgrades Neptune Orient Lines (N03.SG) to Hold from Buy due to limited upside of 11.6% from current share price to fair value estimate of $2.41, which is raised from $2.36 due to higher estimates.



The house is now more optimistic on the outlook of container shipping industry, while “NOL has also ordered new container vessels, which shows it is confident about the future.”

Raises net profit forecasts for FY2010 and FY2011, FY2012 by 23.4%, 35.8% and 14.3% to US$474 million ($622.7 million), US$621 million and US$678 million respectively.



Expects NOL to announce an annual dividend of $0.05 per share when it reports FY10 results in February, approximately 21.0% of its EPS. No dividend was paid in FY2009.



“As earnings continue to improve, we forecast annual dividends of $0.06 and $0.07 per ordinary share in FY2011E and FY2012E respectively.”



Shares up 0.5% at $2.17.