In a note to clients, Bernard Chin of Maybank Research said shareholders should look past the seasonal weakness as he believes the Singapore-listed carrier is in the early stages of a recovery from the slump in the containership sector.
“We believe that NOL’s strength in the trans-pacific trade, its leaner cost base, and encouraging economic indicators from the US and China will culminate in a profitable year for NOL in 2013,” he wrote.
The analyst said a “more muted industry supply situation” this year and next will provide “plump rewards” for those who invest early in the recovery cycle and noted the second and third quarters of 2013 could “cement” NOL’s turnaround.
NOL is may be best known as an operator of containerships but it is also involved in supply chain management, logistics and warehousing. Nearly 68% of its shares are controlled by Singaporean sovereign wealth fund Temasek Holdings, research shows.
