Stock Name: NOL
Company Name: NEPTUNE ORIENT LINES LIMITED
Research House: Nomura
OCBC analyst Lee Wen Ching says NOL’s FY10 results were satisfactory. She notes management expects a firming of freight rates, driven by volume recovery post Lunar New Year and potential restocking demand.
Company Name: NEPTUNE ORIENT LINES LIMITED
Research House: Nomura
Neptune Orient Lines (N03.SG) is up 2.4% at $2.18 after reporting FY10 net profit of US$461 million ($589.3 million) vs a loss of US$211 million a year ago, on 45% growth in revenue to US$9.4 billion.
OCBC analyst Lee Wen Ching says NOL’s FY10 results were satisfactory. She notes management expects a firming of freight rates, driven by volume recovery post Lunar New Year and potential restocking demand.
“We anticipate positive, albeit moderating growth in FY11. Leading indicators point to an increase in U.S. manufacturing activity, while shipping dynamics suggest positive demand and supply balance in 2011 and 2012.”
OCBC lifts its fair value to $2.70 from $2.50, maintains Buy. Nomura, which has a Buy call and $2.60 target says NOL it is better positioned than its peers “due to its slightly better pricing power from a lack of capacity growth this year, relatively higher exposure to transpacific routes and premium carrier status.”
Orderbook suggests $2.20 likely to cap N/T.
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