Keppel Corp 02 (Jan 15 to Dec 24)

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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Re: Keppel Corp

Postby winston » Fri Oct 30, 2020 9:27 am

Looking forward to 100-day plan outcome

In its 3Q business update, KEP reported group revenue of S$4.818bn for 9M20, 74% of our full-year forecast. We deem this in line.

3Q20 net profit was significantly lower yoy (3Q19: S$159m). All segments were profitable in 3Q20 except O&M (flattish qoq revenue, in our estimate).

We look forward to KEP’s 100-day transformation plan (from early-Oct) which includes an O&M strategic review update. Reiterate Add, with TP of S$6.46.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 3F75934AF7
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Re: Keppel Corp

Postby winston » Fri Oct 30, 2020 10:14 am

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Keppel Corporation (KEP SP)
3Q20 Business Update: A New Hope


Keppel reported 9M20 revenue of S$4.8b (-11% yoy).

On a quarterly basis, its 3Q20 revenue of S$1.6b (-21% yoy) was above our expectations of S$1.4b-1.5b.

Excluding O&M, Keppel disclosed that its other businesses were profitable.

Particular bright spots for the quarter were the infrastructure and asset management businesses which delivered strong performances.

Maintain BUY. Target price: S$6.30.

Source: UOBKH

https://research.uobkayhian.com/content ... 916a54588e
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Re: Keppel Corp

Postby behappyalways » Sun Nov 01, 2020 7:33 pm

Keppel Corp returns to profitability in 3Q2020, remains loss-making for 9M2020
https://www.theedgesingapore.com/capita ... ing-9m2020
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Re: Keppel Corp

Postby winston » Mon Nov 02, 2020 1:47 pm

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Keppel Corporation (KEP SP) - O&M clarity likely by early 2021

Keppel Corporation (KEP) has released its first voluntary business update for 3Q20, following the adoption of semi-annual reporting of its results.

The group returned to profitability in 3Q20, compared to the previous quarter’s net loss of S$697m, though 3Q’s net profit is significantly lower YoY.

Except for the Offshore & Marine (O&M) segment, all key business units were profitable in 3Q20.

After KEP reaffirmed its Vision 2030 strategy in end September and said that it has identified assets with a total carrying value of about S$17.5b that can potentially be monetised over time, the group has in the past month announced S$140m in asset divestments and secured an offshore renewables contract worth S$600m.

We also expect the strategic review of its O&M business to be concluded by early next year.

We have always held the view that there is value in KEP’s stock waiting to be unlocked but the question is how and when.

With management committed to undertaking steps to do this, investors will focus on the new opportunities that the group will seize (including renewable energy, data centres and smart urban solutions) and its execution ability which will translate to realised returns eventually. BUY.

Source: OCBC
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Re: Keppel Corp

Postby behappyalways » Wed Nov 11, 2020 2:17 pm

Keppel Land China fully divests Chengdu Hilltop Development for $250.4 mil
https://www.theedgesingapore.com/news/m ... t-2504-mil
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Re: Keppel Corp

Postby winston » Thu Dec 03, 2020 4:14 pm

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PhillipCapital initiates coverage on Keppel Corporation at 'buy' with TP of $6.12 on potential re-rating

by Felicia Tan

PhillipCapital has initiated coverage on Keppel Corporation at “buy” with a target price of $6.12 as it feels the group’s strategic review of its offshore and marine (O&M) unit and divestments could drive a potential re-rating.

Firstly, its reaffirmation of capital recycling to unlock $17.5 billion worth of assets serves as a potential re-rating catalyst as it provides “greater certainty on the assets available as well as [a] timeline for monetisation”.

Secondly, Chua views the launch of Keppel Corp’s Vision 2030 transformation office and 100-day programme as positive.

“We expect its ongoing strategic review of its O&M and Logistics units to provide more clarity on the Group’s pathway to its return on equity (ROE) target of 15%. We understand that the outcome of its Keppel O&M review – open to both organic and M&A options - will be known at the end of the 100 days. We expect an announcement in January 2021,” he says.

“We think the Group could scale down its operations to focus on renewable energy or transition its O&M business to a more asset-light model to free up debt requirements. This could potentially lead to a re-rating,” he adds.

Lastly, Keppel Corp’s longer-term ROE target of 15% looks to remain intact.

As at end September 2020, Keppel Corp’s shipyards have resumed operations since the easing of the circuit breaker measures, with 15,000 workers back at their work sites.

Its recent order wins have also lifted its orderbook to above $4 billion, which is expected to support operations over the next two years.

Through its property arm, Keppel Corp is also expected to divest over $7 billion of assets in the next few years, and proceeds are expected to be reinvested.

“We value its Offshore & Marine division at 0.6x book value, about a 16% discount to peers. We value its Property segment at a 40% discount to RNAV and Infrastructure division at 12x FY21e earnings, in-line with peers. We also value M1 at 12x FY21e earnings, a slight discount to the sector average of 13x. We value Keppel’s stake in Sino-Singapore Tianjin Eco-city at 1.5x book value,” he concludes.

Source: The Edge

https://www.theedgesingapore.com/capita ... tential-re
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