Keppel Corp

Re: Keppel Corp

Postby winston » Mon Oct 05, 2020 9:52 am

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Keppel Corp Ltd
Recommended Action: Technical SELL

Keppel Corp (SGX: BN4) strong downside has been ongoing for the past 1 year and despite the small bullish jump last week, prices still faces stiff resistance and may be visiting the low again based on the technical.

Source: Phillips

http://internetfileserver.phillip.com.s ... elCorp.pdf
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Re: Keppel Corp

Postby winston » Fri Oct 09, 2020 9:33 pm

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Has Keppel Corp bottomed?

Technically, Keppel Corp is in a base formation with an increasing likelihood of an upside break.

The chart appears to have formed at least a temporary or secondary bottom, and looks ready for a rebound as current moves look like they are very much part of a common base formation chart pattern.

Volume is relatively low, as prices move sideways which is normal in base formations.

Short term indicators are rising after turning up from over sold lows.


Source: The Edge Singapore

https://www.theedgesingapore.com/capita ... p-bottomed
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Re: Keppel Corp

Postby winston » Fri Oct 09, 2020 9:38 pm

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Keppel O&M secures $600 mil contract in the offshore renewable energy industry

by Felicia Tan

Keppel Offshore & Marine (Keppel O&M) announced on Oct 9 that it has secured a contract worth approximately $600 million for the engineering, procurement and construction of a vessel for the offshore renewable energy industry.

The contract, which was signed with an unnamed energy company, is “in line” with Keppel Corporation’s Vision 2030, which includes “seeking opportunities in providing renewable energy solutions”, according to the group.

In an SGX filing, Keppel O&M says that it is able to provide a variety of design and construction solutions for the offshore renewable energy industry.

An example cited, is its converter stations and substations that it is currently building to support the offshore wind energy industry in the German sector of the North Sea and in Taiwan.

The contract is on progressive payment terms and is not expected to have any material impact on Keppel Corporation’s net tangible assets (NTA) and earnings per share (EPS) for the current financial year.

Source: The Edge

https://www.theedgesingapore.com/news/o ... y-industry
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Re: Keppel Corp

Postby winston » Mon Oct 12, 2020 9:54 am

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Contract wins exceed forecasts

KEP O&M has won a c.S$600m engineering, procurement and construction (EPC) contract for a vessel in the renewable energy industry.

This brings YTD orders to S$907m, ahead of our FY20F S$500m forecast.

Order book at end-2Q20 was S$3.5bn.

The stock is still trading a trough of c.0.7x CY20F, implying an unwarranted zero value for its KEP O&M business. Reiterate Add (TP: S$6.46).

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 4374537298
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Re: Keppel Corp

Postby winston » Mon Oct 12, 2020 10:33 am

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We think that Keppel has been following up very closely with Keppel Vision 2030, as announced on 29 Sept, with divestments due in months, rather than in years.

In contrast, Keppel has only achieved divestments of $0.8bln – $1bln p.a. in past 5 years, compared to the S$3-$bln that it will undertake.

We like that the “asset light’ model that Keppel is heading towards and that extra cash can be redeployed into new opportunities, such as inorganic growth via merger/sales, or through organic growth i.e. building on renewables.

The recent $600mln contract won is materially higher than what it has secured as reported in 1H20 of S$300mln.

We continue to believe that Keppel remains undervalued with our sum of the parts target price of $5.63 (Bloomberg consensus target price is $5.73, not far from our own estimate).

Property earnings moving forward will be buoyed by pipeline properties amidst close to zero interest rates and abundant liquidity, and the O&M will be driven by renewables.

Infrastructure has seen improvements with data centres driving recovery.

Overarching the entire Keppel, we like that it has divested, and will continue to divest its assets to unlock further value for shareholders.

Keppel’s market cap stands at $8.3bln and currently trades at 0.8x book.

Dividend yield stands at 3.3% & net gearing is at 1.0x.

We believe that the continued monetization of assets at more than its net asset value would
help Keppel to close the valuation gap with its NAV, and we thus maintain our BUY recommendation on Keppel.

Source: Lim & Tan
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Re: Keppel Corp

Postby winston » Wed Oct 14, 2020 9:19 pm

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7 people charged with corruption in Keppel FELS-linked case for taking $879,900 in bribes

by Felicia Tan

Source: The edge

https://www.theedgesingapore.com/news/c ... 900-bribes
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Re: Keppel Corp

Postby winston » Thu Oct 29, 2020 10:25 am

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KEPPEL Corp's infrastructure arm has clinched a S$300 million contract to build, own and operate a new district cooling system plant for 30 years in the Jurong Innovation District (JID).

The new plant is expected to be completed by 2022 and will have a capacity of 14,000
refrigeration tonnes.

Source: Phillips
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Re: Keppel Corp

Postby winston » Thu Oct 29, 2020 11:14 am

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At $4.34, Kep Corp is capitalized at $7.9bln, with price to book at 0.76x and PE at 64x.

Dividend yield is 3.5%.

We continue to remain positive on Kep Corp’s steadily rising new order wins and increasing order books as well as its moves to dispose non-core and underperforming assets.

Bloomberg consensus 12 month target price is $5.78, giving a potential upside objective of 33%, and we maintain our BUY recommendation on Kep Corp.

Source: Lim & Tan
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Re: Keppel Corp

Postby winston » Thu Oct 29, 2020 8:06 pm

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Keppel Corp returns to profitability in 3Q2020, remains loss-making for 9M2020

(Keppel Corp) says it has returned to profitability in 3QFY2020 compared to the net loss of $697 million in 2QFY2020.

The group did not release any figures, however, only stating that net profit for 3QFY2020 was “significantly lower year-on-year”.

With the exception of Keppel Offshore & Marine (Keppel O&M), all business units registered profits in the quarter.

According to the group, Keppel O&M remained loss-making in 3QFY2020 mainly due to a reduction in its top line due to Covid-19-related disruptions. It says it foresees the segment continuing to face “challenges in profitability” for the rest of the year.

For the 9MFY2020 though, Keppel Corp posted revenue of $4.82 billion, down 10.5% compared to the $5.38 billion in 9MFY2019. The decrease was due mainly to lower contributions from Keppel O&M.

The group says it remains loss-making for the 9MFY2020 due to the impairments of $919 million,
mainly arising from the offshore and marine business recorded in 2QFY2020.

Segmentally, only the group’s Connectivity business registered a y-o-y growth to $883 million from the $785 million a year ago.

For the 9MFY2020, Keppel O&M saw a 21.4% decline y-o-y in revenue to $1.1 billion, while Keppel Infrastructure’s revenue for the same period dropped 15% y-o-y to $1.7 billion.

Keppel Land sold some 2,030 homes in the 9MFY2020, compared to 3,520 units the year before, which translates to a 28.6% drop y-o-y to $1.5 billion in home sales value.

While home sales in Singapore picked up, sales were slower in China and Vietnam. This was due to economic headwinds and fewer new project launches in China, and slower approval for new launches in Vietnam.

Keppel’s telco arm M1 also saw a decline in revenue to $779 million in the 9MFY2020 from $838
million a year ago, though M1’s earnings before interest, taxes, depreciation and amortisation (EBITDA) “remained resilient” at $202 million for the period, compared to $211 million in 9MFY2019.

As at Sept 30, the group’s net gearing was lower at 0.96x compared to the 1.00x as at June 30 mainly due to lower working capital requirements.

In the 9MFY2020, Keppel Capital’s asset management fees grew 17.1% y-o-y to $123 million mainly due to contributions from new fund initiatives.

Loh Chin Hua, CEO of Keppel Corporation, said, “Keppel’s key businesses have performed resiliently in the third quarter of 2020, with all key business units remaining profitable, except for Keppel O&M which continues to face very challenging conditions due to both the downturn in the sector and the reduced top line resulting from the COVID19 pandemic and measures to contain its spread.”

“On 29 September 2020, we announced plans to accelerate our Vision 2030 roadmap that will ready Keppel to weather the challenging environment and chart our growth path. To this end, we have established a Vision 2030 transformation office and launched a 100-day programme to drive results.”

“In line with our Vision 2030 strategy, in the past month, we have announced about $140 million in asset divestments from our landbank and non-core assets, and also secured an offshore renewables contract worth about S$600 million.

We are also actively working with Keppel O&M’s Board and Management on the strategic review of this business, including exploring the full spectrum of organic and inorganic options,” he added.

Source: The Edge

https://www.theedgesingapore.com/capita ... ing-9m2020
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Re: Keppel Corp

Postby winston » Fri Oct 30, 2020 9:07 am

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Keppel Corporation's third quarter net profit fell to "significantly lower" levels from same period a year ago, as it emerges from a S$697 million net loss in the preceding quarter.

In a business update to the Singapore Exchange on Thursday, the mainboard-listed conglomerate reported that despite swinging back into the black this quarter, it was still loss-making for the first nine months of 2020 due to S$919 million of significant impairments of recorded in Q2.

Source: Phillips
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