Phillip Securities Research in a Feb 23 research report says: "NOL reported a very weak set of results due to high fuel costs and lower freight rates in the year. Net loss of US$320 million in the 4th quarter accounted for majority of losses in the year of US$478 million.
"While the Group's logistics business recorded a 6% improvement in core EBIT, its contributions are insufficient to offset huge losses from the Liner business. During the results briefing, management highlighted a cost savings goal of US$500 million for FY2012E to enhance the competitiveness of the Group's Liner business.
"We expect losses to narrow in FY2012E with the improved cost structure of the Group's new deliveries. Target price of $1.24, based on 1.0X FY12E BVPS. MAINTAIN REDUCE."
"While the Group's logistics business recorded a 6% improvement in core EBIT, its contributions are insufficient to offset huge losses from the Liner business. During the results briefing, management highlighted a cost savings goal of US$500 million for FY2012E to enhance the competitiveness of the Group's Liner business.
"We expect losses to narrow in FY2012E with the improved cost structure of the Group's new deliveries. Target price of $1.24, based on 1.0X FY12E BVPS. MAINTAIN REDUCE."
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