InvestIdeas

was lamenting on how the shares price popped to 8.8 thereof in the last two weeks. Thus, I took a short break by not looking back at the price.

now that the crude reality is settling in ... seems that my target price is quite reachable.

let's wait in anticipation.

not vested yet.

Hi helios,

The fundamentals for Keppel is not that great going forward. Oil and Properties will be weak for a while.

Take care,
Winston

Thank you Winston for the post in e Oil thread.
8.8, IMO, is a convenient figure (don't really believe in what analysts say).
assuming there'd be delivery failure in contracts, how would you 'price' it in?
20% discount means 6.4 (off target price avg of 7.5), then again 6 is such a psychological number ... when was e last time it was 6-ish? food for (extra) thoughts.
not vested

Keppel Corporation - Braving the storm

Keppel Corp has announced S$330m worth of contracts in Jan 15.

We estimate its order book to be at c.S$12.7bn with deliveries mainly in 2015-16.

In view of the weaker oil price environment, we incorporate a c.50% cut in order assumptions for FY15-16 to S$2.8bn-3bn p.a. This leads to a 5-12% reduction in EPS and a lower target price of S$9.90, still based on RNAV.

We see catalysts from stronger-than-expected margins from the deliveries of proprietary jack-up rigs in 2015 and a potential special dividend from the divestment gains in KepLand and Keppel T&T.

Maintain Add.

Source: CIMB

Keppel Corporation - If we were the boss for a day…

We believe the Keppel CEO will maintain dividend to partially make up for the crashed share price.

He could also conserve working capital for O&M in case risky contracts are cancelled or payments deferred.

In the medium-term, he could pressure accelerate growth in the infra and property units in preparation for a mega dividend payout in CY2018, Keppel’s 50th year anniversary.

We make no changes to our EPS forecasts or target price, still based on RNAV.

Keppel remains an Add. Stronger-than-expected margins and orders are potential re-rating catalysts

Source: CIMB

https://brokingrfs.cimb.com/Nbe4H-YoReh ... IxjnQ1.pdf

Keppel Corp. Offers $2.4 Billion to Buy Out Real Estate Unit
http://www.bloomberg.com/news/2015-01-2 ... es-1-.html

Singapore’s troubled rig builders sitting in the eye of the storm
http://sbr.com.sg/energy-offshore/in-fo ... -eye-storm

KepCorp fails to breach mandatory acquisition threshold, extends closing date for KepLand
http://sbr.com.sg/residential-property/ ... sing-date-

Keppel Land bids SGX goodbye after KepCorp’s successful privatisation bid
http://sbr.com.sg/residential-property/ ... sation-bid

Offshore woes continue to cast a pall over Keppel Corp
http://sbr.com.sg/energy-offshore/news/ ... eppel-corp