Noble Group

Noble Group: Group secured 5.34% equity stake in Pan Asia Corp (PZC AU), and has also been appointed a strategic advisor to PT Transcoal Minergy- 75% owned by Pan Asia. PT Transcoal Minergy is developing a high CV Thermal coal project in South Kalimantan, Indonesia. OCBC previously noted that Noble's post-results briefing and key takeaway was mgmt's focus on an asset-light model with opportunistic capital recycling. Another key takeaway was the focus on cost saving initiatives. Note that while it is good that Noble has taken steps to improve its operations, the macro picture continues to be quite challenging in the medium term, especially for its Agricultural business. OCBC maintain HOLD rating on the stock with an unchanged $1.19 fair value.