Stocks for action Banks and conglomerates are reasonably valued and offer EPS growth along with high dividend yields. We include stocks that could rerate on stock-specific drivers over the next two quarters.
Stock Rating Price Price target
OCBC (OCBC SP) BUY 8.65 11.80
Fraser & Neave (FNN SP) BUY 5.59 6.55
Keppel Corp (KEP SP) BUY 8.76 11.00
ST Engineering (STE SP) BUY 3.19 3.90
SATS (SATS SP) BUY 2.77 3.40
Noble Group (NOBL SP) BUY 1.66 2.10
Keppel Land (KPLD SP) BUY 3.84 4.68
Biosensors (BIG SP) BUY 0.80 1.20
Venture Corp (VMS SP) BUY 8.85 11.50
Pricing as of 17 August, 2010; local currency
Showing posts with label Noble Grp. Show all posts
Showing posts with label Noble Grp. Show all posts
Friday, August 20, 2010
Sunday, August 15, 2010
Aug 13: Genting, Noble, Sembcorp Industries, Wilmar
Written by Bloomberg
Friday, 13 August 2010 08:53
The following companies may have unusual price changes in Singapore trading today. Share prices are from the previous close. Singapore’s Straits Times Index dropped 0.8% to 2,927.04.
Shipping companies: The Baltic Dry Index of commodity-shipping rates rose 2.5% in London yesterday to its highest level since June 29.
Friday, 13 August 2010 08:53
The following companies may have unusual price changes in Singapore trading today. Share prices are from the previous close. Singapore’s Straits Times Index dropped 0.8% to 2,927.04.
Shipping companies: The Baltic Dry Index of commodity-shipping rates rose 2.5% in London yesterday to its highest level since June 29.
Noble Group cut to Underperform by CIMB
Written by The Edge
Friday, 13 August 2010 11:43
CIMB downgrades Noble Group (N21.SG) to Underperform from Outperform, reduces target price to $1.27 from $2.20 after revising down FY10-12 core EPS estimates by 31-39% to reflect lower margins, higher costs, says Dow Jones.
Noble yesterday reports 2Q net profit down 65% at US$85.9 million ($117 million), gross margin at 2.4% vs 3.7% year earlier despite sharply higher revenue, as increased expenses weighed. Broker says “company faces challenging business environment and higher costs.”
Stock down 1.3% at $1.57.
Friday, 13 August 2010 11:43
CIMB downgrades Noble Group (N21.SG) to Underperform from Outperform, reduces target price to $1.27 from $2.20 after revising down FY10-12 core EPS estimates by 31-39% to reflect lower margins, higher costs, says Dow Jones.
Noble yesterday reports 2Q net profit down 65% at US$85.9 million ($117 million), gross margin at 2.4% vs 3.7% year earlier despite sharply higher revenue, as increased expenses weighed. Broker says “company faces challenging business environment and higher costs.”
Stock down 1.3% at $1.57.
Noble off 1.3%; Long-term prospects sound: Nomura
Written by The Edge
Friday, 13 August 2010 11:46
Noble Group (N21.SG) off 1.3% at $1.57 as supply chain manager’s weaker 2Q10 margins raise concerns earnings in coming quarters may continue to disappoint. 2Q10 net profit down 65% on-year at US$85.9 million ($117 million) on lower margins due to increased start-up costs for several businesses, plus absence of one-off gain, says Dow Jones.
“Near-term downgrades and weak 2Q may provide a good entry point, in our view,” says Nomura, which has Buy call with $2.10 target; “we still consider Noble a long-term fundamental re-rating story. New investments, albeit slow, should deliver with optimum utilisation in due course.”
Immediate support at year-to-date low of $1.54.
Friday, 13 August 2010 11:46
Noble Group (N21.SG) off 1.3% at $1.57 as supply chain manager’s weaker 2Q10 margins raise concerns earnings in coming quarters may continue to disappoint. 2Q10 net profit down 65% on-year at US$85.9 million ($117 million) on lower margins due to increased start-up costs for several businesses, plus absence of one-off gain, says Dow Jones.
“Near-term downgrades and weak 2Q may provide a good entry point, in our view,” says Nomura, which has Buy call with $2.10 target; “we still consider Noble a long-term fundamental re-rating story. New investments, albeit slow, should deliver with optimum utilisation in due course.”
Immediate support at year-to-date low of $1.54.
Saturday, August 14, 2010
Noble Group - Undeterred by poor quarter - Kim Eng
Event
Noble’s headline numbers for 2Q10 were disappointing, dragging
down its performance for 1H10. Looking past the numbers, we would
say that its fundamental growth trajectory was still intact. We are
confident that factors, which have hitherto weighed on performance,
will reverse course over the next few quarters. Maintain BUY.
Our View
Revenue surged by 83% yoy in 1H10, thanks largely to the shift in
revenue mix to include the higher‐priced oil and gas products. As a
result, gross profit margins declined from 3.7% to 2.7%. Gross profit,
which is more reflective of the underlying profitability, was up 32%
while adjusted net profit shrank by 12%.
Gross profit growth would have been stronger if soybean margins at
its Chinese operations did not crash, exacerbated by the tight supply
from its South American sourcing. The oil and gas division registered
weaker gross profits due to the difficult trading environment.
However, we expect these situations to improve over time.
In our view, the astronomical increase in the selling, administrative
and operating (SAO) expenses was the single item which surprised
the most on the downside. Spending shot up by 87% to US$159m and
was attributed to start‐up costs for business expansion. Management
expects the SAO expenses to decline to a level more in line with the
historical average of 44% of gross profits in the future.
Noble’s headline numbers for 2Q10 were disappointing, dragging
down its performance for 1H10. Looking past the numbers, we would
say that its fundamental growth trajectory was still intact. We are
confident that factors, which have hitherto weighed on performance,
will reverse course over the next few quarters. Maintain BUY.
Our View
Revenue surged by 83% yoy in 1H10, thanks largely to the shift in
revenue mix to include the higher‐priced oil and gas products. As a
result, gross profit margins declined from 3.7% to 2.7%. Gross profit,
which is more reflective of the underlying profitability, was up 32%
while adjusted net profit shrank by 12%.
Gross profit growth would have been stronger if soybean margins at
its Chinese operations did not crash, exacerbated by the tight supply
from its South American sourcing. The oil and gas division registered
weaker gross profits due to the difficult trading environment.
However, we expect these situations to improve over time.
In our view, the astronomical increase in the selling, administrative
and operating (SAO) expenses was the single item which surprised
the most on the downside. Spending shot up by 87% to US$159m and
was attributed to start‐up costs for business expansion. Management
expects the SAO expenses to decline to a level more in line with the
historical average of 44% of gross profits in the future.
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