Keppel Corp 02 (Jan 15 to Dec 25)

[winston]

not vested

Keppel Corp – BUY

Current valuations appear undemanding. Keppel is currently trading at 13.3x 2020F PE and well below its 5-year average of 14.4x.

Importantly, we highlight that the company’s 1-year forward P/B of 0.9x is 1SD below its 10-year historical average of 1.5x.

Non-offshore and marine businesses stepping up. In its recent 1H19 earnings release, the company reported that its property, infrastructure and investments business segments faced robust revenue and business outlook.

In particular, its investments segment saw significantly improved yoy earnings due to higher contributions from Keppel Capital and M1 as well as one-off gains from previously-held interest in M1.

Share Price Catalyst
Event: Continued recovery in new-order flow in 2H19.
Timeline: 3-6 months.

Source: UOBKH

[winston]

not vested

Closing One Chapter In Brazil And Opening Another One

KEP announced that it had reached a settlement agreement with Sete Brasil on the EPC contracts for its six semi-submersible rigs that were in various stages of construction.

With this overhang on the stock removed, we believe that KEP deserves a re-rating, especially given that the company appears inexpensive on both a PE and P/B basis.

Maintain BUY. Target price: S$7.61.

Source: UOBKH

https://research.uobkayhian.com/content ... d9daf67e2c

[winston]

not vested

Keppel Corp (KEP SP, BUY, TP: SGD7.18)

Weak 3Q Earnings, O&M Outlook Positive; BUY
Results Review

Maintain BUY with new SGD7.18 TP from SGD7.30, 20% upside plus c.4% yield.

3Q19 results were below expectations, with 9M19 net profit of SGD515m representing 58% of our pre-results 2019 forecast.

However, we are bullish on Keppel Corp, with expectations of improving O&M earnings from a stronger net orderbook – SGD5.1bn from FY18’s SGD4.3bn.

In the meantime, the property division earnings should support dividend payment.

Source: RHB

https://research.rhbtradesmart.com/atta ... 644473.pdf

[behappyalways]

Keppel Corp posts 30% fall in 3Q earnings to $159.3 million
https://www.theedgesingapore.com/capita ... 93-million

[behappyalways]

Temasek moves to raise stake in Keppel Corp to 51% with partial offer at $7.35 per share
https://www.theedgesingapore.com/capita ... -735-share

[behappyalways]

Keppel Land to acquire 49% stake in JV for $78 mil to co-develop integrated township in Mumbai
https://www.theedgesingapore.com/capita ... integrated

[behappyalways]

Keppel Corp posts 25.5% drop in FY19 earnings to $707 mil on absence of one-off gains, proposes 20% lower final dividend of 12 cents per share
https://www.theedgesingapore.com/capita ... s-20-lower

[winston]

not vested

A BUY Even After Crude Oil Price Collapse
Target Price (Return): SGD7.60 (35%)
Price: SGD5.62
Market Cap: USD7,405m
Avg Daily Turnover (SGD/USD) 18.0m/13.1m

Maintain BUY, with a new SGD7.60 TP from SGD7.80, offering 35% upside plus c.4% FY20 yield.

The recent OPEC+ meeting ended with no agreement, and Brent crude sank to USD36.00/bbl, vs the past 12 months’ average of USD63.00/bbl.

If sustained at a low price, this could adversely affect Keppel’s offshore and marine (O&M) forward orderbook.

However, Dec 2019 net O&M orderbook of SGD4.4bn (higher than Dec 2018’s SGD4.3bn) is a plus. In the meantime, its property division’s earnings should support dividends.

We await further newsflow regarding Temasek’s partial offer to acquire an additional 30.55% stake in Keppel for SGD7.35/share. The announcement was made in Oct 2019, and Temasek can only make the offer after the pre-conditions (including domestic and foreign regulatory
approvals) are fulfilled or waived. If Temasek is successful in raising its stake to 51%, the subsequent strategic review could lead to more value created for shareholders.

Source: RHB

https://research.rhbtradesmart.com/atta ... e1bd5a.pdf

[helios]

With so much of e COVID going on ... this is looking very cheap and thus have logged in a GTD bid offer for e next 2 weeks.

[helios]

Bought some today because this is not falling lower than 5 .....