Stock Name: NOL
Company Name: NEPTUNE ORIENT LINES LIMITED
Kim Eng Research in a Dec 6 research report says: "NOL reported a large widening in its net loss to US$91.1 million in 3Q11 from US$57.0 million in 2Q11 despite revenue improvement of 2.9% q-o-q, which generally disappointed the market.
"Falling freight rates due to excess capacity on key routes and higher bunker fuel prices have combined to hurt container shipping lines. The group's quarterly losses could further widen in the off-peak season in 4Q11.
"Though current stock valuation is inexpensive, we think investors should ideally wait for more positive signs of moderating freight rate decline before taking the plunge. Target price of $1.10, based on 0.8x FY12F P/BV. HOLD (reinitiating coverage)."
Company Name: NEPTUNE ORIENT LINES LIMITED
| Research House: Kim Eng | Price Call: HOLD | Target Price: 1.10 |
Kim Eng Research in a Dec 6 research report says: "NOL reported a large widening in its net loss to US$91.1 million in 3Q11 from US$57.0 million in 2Q11 despite revenue improvement of 2.9% q-o-q, which generally disappointed the market.
"Falling freight rates due to excess capacity on key routes and higher bunker fuel prices have combined to hurt container shipping lines. The group's quarterly losses could further widen in the off-peak season in 4Q11.
"Though current stock valuation is inexpensive, we think investors should ideally wait for more positive signs of moderating freight rate decline before taking the plunge. Target price of $1.10, based on 0.8x FY12F P/BV. HOLD (reinitiating coverage)."
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