- FY2010 revenue of S$9,422m, net profit of S$461m
- Revenue and net profit are within expectations
- Annual dividend of S$0.046 per ordinary share for FY2010
- Upgrade from hold to buy and raise fair value from S$2.41 to S$2.50
FY2010 results
NOL reported FY2010 revenue of US$9,422m (+45% y-y) and net profit of US$461m, which was a reversal from net loss of US$741m in FY2009. The revenue was 4.2% higher than our estimate of US$9,039m while the net profit was 2.8% lower than our forecast of US$474m. NOL attained record revenue and strong net profit because of greater container shipping volumes and rates.
Dividend for FY2010
NOL also announced a dividend of S$0.046 for FY2010. No dividend was paid for FY2009. It has achieved a turnaround in its business and we expect further improvements in its net profit for FY2011E. By paying a dividend, it shows that it is confident about the future. Furthermore, it has ordered new vessels last year and we think that these are needed to meet the improvements in demand for container shipping.
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