NOL

NOL: China Shipping Container issued a positive profit alert, which might lead to a positive read-through for NOL. The profit, according to the company, was mainly attributable to: 1) the improvement of container shipping market in 2012. During the period, volume increased and rates recovered gradually; 2) company’s correct prediction of the market trend, hence implemented effective measures to maximize efficiency of trade lanes; 3) disposal of selfowned container boxes at relatively high second-hand market prices. DB stays positive on the Container Shipping sector, with the peak shipments ahead of Chinese New Year (CNY) have surprised on the upside. Given the strong volume prior to CNY, carriers are planning another round of rate hike in early Feb. OCBC maintains a BUY with TP of $1.38.