Wednesday, November 19, 2014
NOL: UOB Kay Hian maintains Buy with TP of $1.01. House reckons BUY on cheap valuation. NOL’s share price has dropped 22% since end-June to a five-year low, driven by the expectation of a third year of losses, weak freight rates, port congestion on the US West Coast and the potential sale of its profitable logistics business. House thinks the market has overacted to these negative factors. Current valuation at only 0.74x 2015F P/B is very cheap, vs its historical 0.9-1.0x P/B and peers’ average of 0.8x P/B.