Nomura Research in an Aug 23 research report says: "NOL P7 monthly container revenue continued to sequentially decline (-11% y-o-y, the first month of double-digit negative growth). However, average freight rate sequentially rebounded (+1.8% p-p) due to cargo mix and bunker surcharges.
"We expect volumes and freight rates to sequentially improve in August due to partially successful peak season surcharge. This along with lower bunker prices will lead to lower 3Q losses, but we still expect 2H11 losses. With NOL reporting a 1H11 net loss of US$67 million, our earnings are under review given we are only estimating a full-year loss of US$73 million.
"Our revised price target of $1.65 is based on sum-of-the-parts valuation. We value the shipping business using mid cycle minus 1 standard deviation of 0.7x for FY11F and apply a 8x EV/EBITDA multiple to the port business.
NOL IS TRADIND AT MAR 2009 LOW .... WAY OFF THE $6 HIGH IN 2007 .. 500% DISCOUNT .
http://ichart.finance.yahoo.com/t?s=N03.SI Barclays Capital has upgraded Singapore container shipping firm Neptune Orient Lines (NOL) (NEPS.SI) to equal-weight from underweight, but has cut its target price to $1.61 from $1.80.
Barclays has upgraded NOL to equal-weight as its shares have fallen to a two-year low and are trading at 0.7 times its estimated 2011 price-to-book value. The brokerage also said it expects NOL’s second half earnings to be stronger than the preceding six months, driven by stronger freight rates due to a seasonal recovery in volumes and resilient demand
www.businesstimes.com.sg/sub/news/story/0,4574,454527,00.html
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Any takers on these companies?
Six Singaporean companies have made Forbes Asia's annual 'Best Under A Billion List'. Real estate investment trust and private investment funds manager ARA Asset Management is the only one of the eight companies on last year's list to retain its spot this year - the other five are first-timers.
Making their debut on the list of 200 top Asia-Pacific public-listed firms with sales under US$1 billion, are three companies linked to the offshore oil and gas sector - Ezion Holdings, PEC and Miclyn Express Offshore. The latter is based in Singapore but listed on the Australian Securities Exchange last year.
Also publicly-listed just last year, on the SGX mainboard, is China-based industrial waste treatment equipment maker Leader Environmental Technologies, categorised by Forbes as a Singapore firm on this year's 'Best Under A Billion' list. Warehousing and logistics services provider CWT, with sales of US$583 million and net income of US$140 million over the last 12 months, is the largest of the six.
The number of Singapore firms on Forbes' list of 200 - chosen from a pool of more than 15,000 for their earnings growth, sales growth and return on equity in the past 12 months and over three years - is just above 2009's five, but still lower than the 14 in 2008 and 20 in 2007.
Forbes Asia editor Tim Ferguson said: 'Essentially these are our picks of the companies that have best managed through the economic volatility that began in 2008. Most navigated the global credit crunch with little or no debt on their balance sheets.'
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