NOL: Mgt notes in interview with The Edge that they are confident things are looking better. Add that current transpac spot rates abt 14% above troughs in Mar (seasonally low), and peers have unified view that spot rates are unsustainably low. 92% of fleet utilization and increase in vol suggest grp sheltered from oversupply…..
Grp is also allocating more funds to expand logistics arm as demand increases (12% of planned capex) and project growth of 6-7% which could boost grp’s margins and deepen value chain. Add that grp is in their best financial position in a decade with US$663m in cash. Valuations appear attractive with grp trading at 1.1x P/B vs historical avg of 1.3x.
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