Noble Group, the Singapore- based commodities supplier backed by China’s sovereign wealth fund, rose to the highest in almost eight months in Singapore trading after it posted a 19% rise in third-quarter profit and brokers upgraded the stock.

The shares rose as much as 3.3% on the local stock exchange to $2.20, the highest since March 19. They closed up 1.9% at $2.17. The key index fell 0.7%.

 

Noble was raised to “outperform” from “neutral” at CIMB-GK Securities with a 12-month target price of $2.45 per share. Credit Suisse also raised its rating to “outperform” from “neutral” and increased its share-price estimate to $2.55 from $1.65. Phillip Securities raised its rating to “buy” from “hold” and set its target price at S$2.33.

 

Net income rose to US$157.2 million ($202.3 million), or 2.53 cents a share, in the three months ended Sept. 30, from US$132.1 million, or 2.47 cents, a year earlier, yesterday in a statement to the local stock exchange.

 

Sales for the quarter rose 79% to US$14.94 billion, lifting the nine-month revenue by 82% to a record US$39.26 billion, it said. Noble, which received almost three quarters of its gross profit last year from energy and agriculture operations, is benefitting as crude oil, corn and soybean prices hover at two-year highs, while cotton is at a record.

 

“Higher revenue levels reflected the impact of a more stable economic environment which returned commodity price levels to more normalized levels,” the company said yesterday.

 

Noble wants to grow its grain and oilseeds businesses to take advantage of rising global food demand, Chief Executive Officer Ricardo Leiman said Sept. 28. It aims to double annual profit to US$1 billion in three years as consumption of sugar, grains, coal and other resources increases in Asia.