NOL

NOL: Maybank KE recommends a BUY and upgraded the TP to $1.71, premised on a recovering economy, led by encouraging indicators from the US and China. The Company is their top pick within the Transport sector, due to its significant exposure to the Trans-pacific trade and a relatively minimal exposure to the Asia-Europe trade. The Asia-Europe trade remains beset by Euro-zone woes and is fully exposed to the onslaught of new shipping capacity coming on-stream in 2013. Encouragingly, the Chinese containerized freight indices (CCFI and SCFI) have shown a recent up-tick to kick-off 2013 as well. House forecast freight rates, especially those of the Trans-pacific trade will be sustained at profitable levels through a mix of controlled capacity and an economic recovery led by the US.