Phillip upgrades Neptune Orient Lines (N03.SG) to Buy from Hold, raises target to $2.36 from $2.06; says 3Q net profit of US$282 million ($370.2 million) topped house’s forecast by 80.8%, revenue 4.3% higher than estimate.

Raises 2010 net profit estimates by 52.0% to US$384 million, 2011 forecast +57.1% at US$457 million, 2012 forecast +46.5% at US$593 million due to better shipping volumes, rates. 

 

“We also note that NOL has placed an order for 12 new container ships that will be delivered in 2013 and 2014. This shows that NOL is confident on the outlook for the shipping industry.” 

 

Says 4Q10 volumes, rates expected to decline slightly as 3Q10 peak season over, “however, we believe that global trade is likely to remain firm next year and NOL will benefit from higher volumes and rates.” 

 

Shares +4.4% at $2.15, vs STI down 0.6%.