Singapore Stock Market News

Keppel T&T - Temporary pinch

StockFanatic
Publish date: Thu, 17 Oct 2013, 12:10 PM
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Keppel T&T's 3Q13 operating margins fell to a seven-quarter low of 10.5%. Both the logistics and data centre segments were affected by higher operating costs. We believe the margins are likely to stay depressed ahead of the opening of new facilities in FY14-15.

9M13 net profit of S$45.5m, at 75% of our full-year forecast, was in line with our estimates. We maintain our EPS forecasts, but roll forward our valuation to CY15 earnings which raises our SOP-based target price to S$1.92. We maintain Outperform and see the new facilities as catalysts for the stock.
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