Stock Name: NOL
Company Name: NEPTUNE ORIENT LINES LIMITED
Maybank-Kim Eng Research in a Feb 7 research report says: "NOL reported a 6% y-o-y increase in container shipping volumes for the six weeks from Nov 19, 2011 to Dec 30, 2011. This was helped by the burgeoning intra-Asia traffic growth.
"However, the average revenue per forty-foot equivalent unit (FEU) fell by 14% y-o-y to about US$2,265/FEU, reflecting persistent industry challenges, in particular on the long-haul routes. The recent positive macroeconomic data from the US and China may support a more sustainable rate recovery in 2H12 coupled with further capacity rationalisation.
"In the near-term however, a better buying opportunity could arise when rates are widely expected to decline post the seasonally slow CNY period. We raise our target price to $1.35, based on mid-cycle valuation of 1.0x FY12F P/BV. MAINTAIN HOLD."
Company Name: NEPTUNE ORIENT LINES LIMITED
| Research House: Kim Eng | Price Call: HOLD | Target Price: 1.35 |
Maybank-Kim Eng Research in a Feb 7 research report says: "NOL reported a 6% y-o-y increase in container shipping volumes for the six weeks from Nov 19, 2011 to Dec 30, 2011. This was helped by the burgeoning intra-Asia traffic growth.
"However, the average revenue per forty-foot equivalent unit (FEU) fell by 14% y-o-y to about US$2,265/FEU, reflecting persistent industry challenges, in particular on the long-haul routes. The recent positive macroeconomic data from the US and China may support a more sustainable rate recovery in 2H12 coupled with further capacity rationalisation.
"In the near-term however, a better buying opportunity could arise when rates are widely expected to decline post the seasonally slow CNY period. We raise our target price to $1.35, based on mid-cycle valuation of 1.0x FY12F P/BV. MAINTAIN HOLD."
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