UOBKayhian on 3 Nov 2014
FY14F PE (x): n.m.
FY15F PE (x): 19.0
Loss again in 3Q14. NOL recorded net loss of US$23m in 3Q14 compared with
US$20m gain in 3Q13. This was mainly due to the increase in finance cost (US$35m
compared with a gain of US$8m in 3Q13). The additional cost was also due to the
congestion in South California, which dragged down the result. Its revenue slightly slid
0.2% yoy. The steady growth of its logistics business was offset by the lower rate and
volume in the container shipping business.
Cut target price to SG$1.01, maintain BUY. By cutting the earnings forecast and
reducing the valuation multiple from 1.1x to 1.0x P/B (considering the weak industry
condition), we cut our target price to SG$1.01. We still maintain BUY as we think the
current 0.8x 2015F P/B has reflected its intention to sell the logistic business, but the
earnings forecast has not reflected the possible huge gain from the sale of the
business.
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