Noble Group is due to report its FY14 results this evening, and we are expecting the company to report revenue of US$101.991b and a core net profit of US$470.3m (street consensus is expecting sales of US$92.7b and earnings of US$470.6m).

Meanwhile, Iceberg Research has issued a second report on Noble, this time raising issues over the company‟s cashflows. Iceberg is calling Noble a “Repeat of Enron”, and has now pegged a revised fair value of S$0.12. We are in the process of looking into the new Iceberg report, as will many market participants.

And in the meantime, we suspect that the market will also adopt a cautious approach ahead the results due this evening. Our Buy rating and S$1.30 fair value are both still under review.

Source: OCBC Research - 26 Feb 2015