Stock Name: NOL
Company Name: NEPTUNE ORIENT LINES LIMITED
DBS Vickers Securities in a June 16 research report says: "Close on the heels of its recently announced S$300m 4.40% notes issue, NOL Group announced the signing of LOIs for 12 new ships with Korean shipyards due for delivery in 2013-14.
"While there is no immediate impact on earnings from these new orders, we view the industry-wide phenomenon of placing new orders to gain market share in the 2013-14 period with caution, as even the long-term demand-supply dynamics now begin to look increasingly fragile.
"2Q11 will likely be another loss-making quarter for NOL, as well as the industry at large, and whether 3Q11 will be strong enough to recover the losses will remain to be seen. Target price of $2.10. MAINTAIN HOLD."
Company Name: NEPTUNE ORIENT LINES LIMITED
| Research House: DBS Vickers | Price Call: HOLD | Target Price: 2.10 |
DBS Vickers Securities in a June 16 research report says: "Close on the heels of its recently announced S$300m 4.40% notes issue, NOL Group announced the signing of LOIs for 12 new ships with Korean shipyards due for delivery in 2013-14.
"While there is no immediate impact on earnings from these new orders, we view the industry-wide phenomenon of placing new orders to gain market share in the 2013-14 period with caution, as even the long-term demand-supply dynamics now begin to look increasingly fragile.
"2Q11 will likely be another loss-making quarter for NOL, as well as the industry at large, and whether 3Q11 will be strong enough to recover the losses will remain to be seen. Target price of $2.10. MAINTAIN HOLD."
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