Noble Group – Commodities aren’t Sexy at the Moment

Noble Group 1-Year Chart 2015Noble Group (N21.SI)
is Asia’s largest commodity trader and one of China’s 20 biggest companies. With headquarter in Hong Kong and listing in Singapore, the company generated 2014 with 1,900 employees and a turnover of almost 86bn SGD an EBIT of 278m SGD. With a debt/equity ratio of 110% and a credit rating near junk level of BBB Noble Group is looking for new funding opportunities. Non-transparent and low commodity prices have made the company vulnerable to short speculations.

The share price is currently at 0.51 SGD and almost 60% below the previous year’s price. The stock is currently among the worst performing in the STI. A deal to the supply 2.88m barrels of diesel to Ecuador and an upsize of its credit facility to 1.52m SGD might give the company some air. That should give the stock a tailwind.

The majority of covering analysts recommend holding the stock and forecast a price target of 0,76 SGD. Technically we don’t see enough evidence to get long in the next time but the stock should be kept on the watch list for a possible turnaround scenario.

AIS Rating: ☆☆☆


2011 2012 2013 2014 2015 2016e
EPS (US cents) 6.20 6.91 3.37 1.58 -26.16 4.47
Change 11% -51% -53% -1756% 117%
P/E current:

(Rating and Table Updated: Jun 2016)