Noble

Noble: DMG hosted Noble for OSK’s HK corporate day on 18 Sep 12. Some of the insights that were shared include: 1) a better outlook for its Agriculture segment in 2H12: extension of sugar mill operations for two nths and Argentina crush margins to benefit from tighter market conditions are a positive. 2) Noble sees shale gas (from the US) as one of the key markets going forward. 3) Thermal coal remains a key product for Noble, accounting for 15% of imports into China. 4) Management of freight rates crucial for bulk commodities managers such as Noble as products such as coal and iron ore (that Noble transports) are relatively lower priced on a per tonne basis. Overall, house continue to like Noble for being a proxy to market recovery and believe earnings growth will drive an upward re-rating. Maintain BUY with TP of $1.60, based on 14.7x core FY12 EPS.