Stock Name: NOL
Company Name: NEPTUNE ORIENT LINES LIMITED
Research House: OCBC
OCBC Investment Research in a May 16 research report says: "NOL had its first quarterly loss in a year when it reported a small loss of US$9.7 million for 1QFY11, which was better than market expectations of a loss of US$10 million.
"Although this was an improvement from the US$98.5 million loss reported over the same period a year ago, on a q-o-q basis, earnings were in the red versus 4QFY10's US$177.5 million earnings. Revenue rose 16% y-o-y from US$2.1 billion to US$2.4 billion while gross profit came in at US$191.8 million, up from US$89 million a year ago, but down 52% q-o-q due to rising fuel costs.
"We have adjusted our FY2011 estimates down, lowering volume and freight rate growth by 3% and 1%, respectively. Fair value estimate reduced from $2.70 to $2.05, based on the 5-year historical P/B average of 1.25x. DOWNGRADE TO HOLD."
Company Name: NEPTUNE ORIENT LINES LIMITED
Research House: OCBC
OCBC Investment Research in a May 16 research report says: "NOL had its first quarterly loss in a year when it reported a small loss of US$9.7 million for 1QFY11, which was better than market expectations of a loss of US$10 million.
"Although this was an improvement from the US$98.5 million loss reported over the same period a year ago, on a q-o-q basis, earnings were in the red versus 4QFY10's US$177.5 million earnings. Revenue rose 16% y-o-y from US$2.1 billion to US$2.4 billion while gross profit came in at US$191.8 million, up from US$89 million a year ago, but down 52% q-o-q due to rising fuel costs.
"We have adjusted our FY2011 estimates down, lowering volume and freight rate growth by 3% and 1%, respectively. Fair value estimate reduced from $2.70 to $2.05, based on the 5-year historical P/B average of 1.25x. DOWNGRADE TO HOLD."
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