Noble Group

UOBKayhian on 24 Feb 2014

FY14F PE (x): 12.1
FY15F PE (x): 12.0

Noble Group reported a net profit of US$244m for 2013, down 48% yoy due to losses
from the agricultural division, where trade flows were affected by the logistics congestion
in Brazil. Results were above ours but below consensus expectations. The variance to
our expectation arises from non-operating items, ie gain from investment, hedging and
forex. Noble did not disclose the impact from biological revaluation. Maintain SELL with
a lower target price of S$0.90 (from S$0.92) after adjusting to the revised EPS. Target
price is based on 11x 2014F PE, a 30% discount to its long-term mean PE of 15.3x.