NOL

NOL: At its dbAccess corporate roadshow, management cited that the demand of the traditional 3Q peak season has been mild. Capacity management by the industry helped rates pick up in July but they have started to weaken slightly. 4Q should see rates and volume softening as is often the case. Assuming global growth does not collapse in 2014, they expect a slightly better environment for the industry because they see supply growth decreasing slightly in 2014. Management has not ruled out placing orders for the 18k TEU vessels, depending on its view of the future operating environment. NOL continues on the second year of its US$500m target of cost savings per year, having achieved US$240m in 1H13. DB maintains its HOLD rating with TP $1.14 based on 0.9x 2013 P/B.